2025 Strata Insurance Market Snapshot
By Teighan Carr and Nikitta Albury
The Australian strata insurance market has continued to stabilise throughout 2025. Following several years of increased premiums and reduced underwriting appetite, the market has now shifted towards a softening phase.
According to the Insurance Council Catastrophe 2024-25 report, the most recent catastrophe season saw a notable reduction in total claims incurred, with insurance losses to date decreasing by 25 per cent from $2.61 billion in 2023–24 to $1.97 billion in 2024–2025. This is despite The North Queensland Floods in January 2025 and Cyclone Alfred in early March, which formed off the coast of Queensland.
Challenges and limitations persist for strata buildings that are considered high risk or for poorly maintained properties, but for a sizable portion of strata schemes we are seeing a welcomed trend of moderate annual increases, and in many cases, reductions in premiums. Competitive pricing has been driven by growing insurer competition and a renewed push for insurers chasing market share, this was last present in the market in 2016.
Below is our summary of how the Australian Strata Insurance landscape has evolved in 2025, along with what we believe the next 12 months are likely to hold.
Emerging Capacity & Pricing Trends
Residential Strata: The residential strata insurance market has experienced a notable uplift in available capacity throughout 2025. A combination of new entrants and increasing limits for total insured values has signalled growing insurer confidence in insuring standard residential risks. This increase in capacity also supports the larger-scale strata complexes and master-planned community precincts that continue to be developed in response to housing shortages.
In strata, at an aggregate level, claims loss ratios appear to have stabilised over the past two years as insurers have returned to profitability. Insurers are comfortable applying modest premium adjustments rather than the large year-on-year increases seen during the harder market. As a result, residential buildings that previously faced double-digit premium increases are now seeing stable outcomes or modest reductions, particularly where they can demonstrate appropriate building maintenance activities, a favourable claims history, and reliable building information.
High Risk Commercial and Complex risks: 2025 saw the introduction of new local insurance solutions aimed at supporting complex strata risks. In response to market feedback and identified gaps, new entrants and established underwriting agencies have expanded their product ranges to offer insurance for buildings that previously faced limited options - particularly those with poor claims, major building defects, mixed high hazard commercial use, or other characteristics that traditionally place them in the “hard-to-place” category. By increasing their technical underwriting capabilities and broader underwriting guidelines this has given strata schemes and insurance brokers more flexibility when handling complex placements.
Premiums for complex buildings continue to vary significantly, with many still subject to “minimum premiums” and strict underwriting conditions or subjectivities. As a result, smaller residential properties that fall under these insurance solutions can feel the cost impact more acutely. Conversely, for larger buildings or higher-hazard commercial strata risks, there is an opportunity for some genuine broker pricing competition as multiple quotes are now being sourced.
Outlook for 2026
The outlook for 2026 remains broadly positive. We anticipate two new strata insurance offerings, which should continue to drive healthy competition and support more favourable outcomes for many strata schemes.
Pricing is likely to remain stable, with the potential for further softening in parts of the market. However, this will depend on how Australia’s upcoming summer catastrophe season unfolds. A quiet weather period would maintain current insurer pricing, while multiple major events could place upward pressure on premiums later in the year.
Overall, the insurance market enters 2026 with optimism: more capacity, more choice, and generally improved conditions compared with recent years.
Teighan Carr has over 13 years of experience and deep expertise across the Strata and Real Estate sector, leading with a strong focus on innovation, collaboration and tailored insurance solutions.
Nikitta Albury brings over 12 years of specialised broking experience, recognised for her sharp sector knowledge and ability to navigate complex strata and property environments with clarity and precision.
The Australian strata insurance market has continued to stabilise throughout 2025. Following several years of increased premiums and reduced underwriting appetite, the market has now shifted towards a softening phase.
According to the Insurance Council Catastrophe 2024-25 report, the most recent catastrophe season saw a notable reduction in total claims incurred, with insurance losses to date decreasing by 25 per cent from $2.61 billion in 2023–24 to $1.97 billion in 2024–2025. This is despite The North Queensland Floods in January 2025 and Cyclone Alfred in early March, which formed off the coast of Queensland.
Challenges and limitations persist for strata buildings that are considered high risk or for poorly maintained properties, but for a sizable portion of strata schemes we are seeing a welcomed trend of moderate annual increases, and in many cases, reductions in premiums. Competitive pricing has been driven by growing insurer competition and a renewed push for insurers chasing market share, this was last present in the market in 2016.
Below is our summary of how the Australian Strata Insurance landscape has evolved in 2025, along with what we believe the next 12 months are likely to hold.
Emerging Capacity & Pricing Trends
Residential Strata: The residential strata insurance market has experienced a notable uplift in available capacity throughout 2025. A combination of new entrants and increasing limits for total insured values has signalled growing insurer confidence in insuring standard residential risks. This increase in capacity also supports the larger-scale strata complexes and master-planned community precincts that continue to be developed in response to housing shortages.
In strata, at an aggregate level, claims loss ratios appear to have stabilised over the past two years as insurers have returned to profitability. Insurers are comfortable applying modest premium adjustments rather than the large year-on-year increases seen during the harder market. As a result, residential buildings that previously faced double-digit premium increases are now seeing stable outcomes or modest reductions, particularly where they can demonstrate appropriate building maintenance activities, a favourable claims history, and reliable building information.
High Risk Commercial and Complex risks: 2025 saw the introduction of new local insurance solutions aimed at supporting complex strata risks. In response to market feedback and identified gaps, new entrants and established underwriting agencies have expanded their product ranges to offer insurance for buildings that previously faced limited options - particularly those with poor claims, major building defects, mixed high hazard commercial use, or other characteristics that traditionally place them in the “hard-to-place” category. By increasing their technical underwriting capabilities and broader underwriting guidelines this has given strata schemes and insurance brokers more flexibility when handling complex placements.
Premiums for complex buildings continue to vary significantly, with many still subject to “minimum premiums” and strict underwriting conditions or subjectivities. As a result, smaller residential properties that fall under these insurance solutions can feel the cost impact more acutely. Conversely, for larger buildings or higher-hazard commercial strata risks, there is an opportunity for some genuine broker pricing competition as multiple quotes are now being sourced.
Outlook for 2026
The outlook for 2026 remains broadly positive. We anticipate two new strata insurance offerings, which should continue to drive healthy competition and support more favourable outcomes for many strata schemes.
Pricing is likely to remain stable, with the potential for further softening in parts of the market. However, this will depend on how Australia’s upcoming summer catastrophe season unfolds. A quiet weather period would maintain current insurer pricing, while multiple major events could place upward pressure on premiums later in the year.
Overall, the insurance market enters 2026 with optimism: more capacity, more choice, and generally improved conditions compared with recent years.
Teighan Carr has over 13 years of experience and deep expertise across the Strata and Real Estate sector, leading with a strong focus on innovation, collaboration and tailored insurance solutions.
Nikitta Albury brings over 12 years of specialised broking experience, recognised for her sharp sector knowledge and ability to navigate complex strata and property environments with clarity and precision.
The Australian strata insurance market has continued to stabilise throughout 2025. Following several years of increased premiums and reduced underwriting appetite, the market has now shifted towards a softening phase.
According to the Insurance Council Catastrophe 2024-25 report, the most recent catastrophe season saw a notable reduction in total claims incurred, with insurance losses to date decreasing by 25 per cent from $2.61 billion in 2023–24 to $1.97 billion in 2024–2025. This is despite The North Queensland Floods in January 2025 and Cyclone Alfred in early March, which formed off the coast of Queensland.
Challenges and limitations persist for strata buildings that are considered high risk or for poorly maintained properties, but for a sizable portion of strata schemes we are seeing a welcomed trend of moderate annual increases, and in many cases, reductions in premiums. Competitive pricing has been driven by growing insurer competition and a renewed push for insurers chasing market share, this was last present in the market in 2016.
Below is our summary of how the Australian Strata Insurance landscape has evolved in 2025, along with what we believe the next 12 months are likely to hold.
Emerging Capacity & Pricing Trends
Residential Strata: The residential strata insurance market has experienced a notable uplift in available capacity throughout 2025. A combination of new entrants and increasing limits for total insured values has signalled growing insurer confidence in insuring standard residential risks. This increase in capacity also supports the larger-scale strata complexes and master-planned community precincts that continue to be developed in response to housing shortages.
In strata, at an aggregate level, claims loss ratios appear to have stabilised over the past two years as insurers have returned to profitability. Insurers are comfortable applying modest premium adjustments rather than the large year-on-year increases seen during the harder market. As a result, residential buildings that previously faced double-digit premium increases are now seeing stable outcomes or modest reductions, particularly where they can demonstrate appropriate building maintenance activities, a favourable claims history, and reliable building information.
High Risk Commercial and Complex risks: 2025 saw the introduction of new local insurance solutions aimed at supporting complex strata risks. In response to market feedback and identified gaps, new entrants and established underwriting agencies have expanded their product ranges to offer insurance for buildings that previously faced limited options - particularly those with poor claims, major building defects, mixed high hazard commercial use, or other characteristics that traditionally place them in the “hard-to-place” category. By increasing their technical underwriting capabilities and broader underwriting guidelines this has given strata schemes and insurance brokers more flexibility when handling complex placements.
Premiums for complex buildings continue to vary significantly, with many still subject to “minimum premiums” and strict underwriting conditions or subjectivities. As a result, smaller residential properties that fall under these insurance solutions can feel the cost impact more acutely. Conversely, for larger buildings or higher-hazard commercial strata risks, there is an opportunity for some genuine broker pricing competition as multiple quotes are now being sourced.
Outlook for 2026
The outlook for 2026 remains broadly positive. We anticipate two new strata insurance offerings, which should continue to drive healthy competition and support more favourable outcomes for many strata schemes.
Pricing is likely to remain stable, with the potential for further softening in parts of the market. However, this will depend on how Australia’s upcoming summer catastrophe season unfolds. A quiet weather period would maintain current insurer pricing, while multiple major events could place upward pressure on premiums later in the year.
Overall, the insurance market enters 2026 with optimism: more capacity, more choice, and generally improved conditions compared with recent years.
Teighan Carr has over 13 years of experience and deep expertise across the Strata and Real Estate sector, leading with a strong focus on innovation, collaboration and tailored insurance solutions.
Nikitta Albury brings over 12 years of specialised broking experience, recognised for her sharp sector knowledge and ability to navigate complex strata and property environments with clarity and precision.
