Inflation winner cashes in on demand for discounted stock
The insurance brokers get the benefit of rising insurance premiums without exposure to an increasing cost of claims. And they’re being richly rewarded.
For all the talk about crowded trades in Australian large caps – Woolworths, Coles, Brambles – the one that’s often missed is the insurance brokers.
The brokers, who sell insurance policies to businesses in return for a cut of the premium, are a stock for the times. High inflation means a higher cost of future claims for insurers, and therefore higher premiums today.
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Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com
