Insurance Market Update: Property
Q2, 2024
The end of the 2024 financial year saw significant increases in competition between insurers locally.
The combination of increased insurer appetite, new market entrants, and local underwriting agencies signifies a favourable trend for policyholders in the Australian property insurance sector. This environment typically fosters competitive pricing with well managed risks maintaining rates on renewal and obtaining broader coverage. Premium rates are showing stability with low to moderate risks obtaining rollover or single digit increases.
High interest rates, continuing technological advancement and emerging capacity are the main drivers producing favourable outcomes for policyholders.
Key factors that currently have influence on the current market are summarised below:
High interest rates: Long-tail classes of insurance are attractive to insurers due to high interest rates. Insurers are focused on the weight of premium (referred to as top line growth), in order to benefit from investing their capital at higher interest rates.
Increased competition driven by new entrants: With local incumbent insurers are competing to increase their top line, premium rates are reducing to retain market share.
Role of technology: Artificial intelligence (AI), machine learning, and big data analytics are all being deployed by insurers. These technologies have aided underwriting, claims processing, customer service, and risk assessment, improving efficiency and customer experience.
After several years of large increases on high-hazard industries or risks with assets exposed to natural perils, rates have slowed. Increases of 5%-10% should be expected.
Underinsurance remains a significant risk particularly regarding business interruption claims.
Jasmin Gabrielli
Jasmin is an experienced insurance professional with over 11 years of general broking expertise across a diverse range of general and hard-to-place specialty lines specifically in commercial applications.
The end of the 2024 financial year saw significant increases in competition between insurers locally.
The combination of increased insurer appetite, new market entrants, and local underwriting agencies signifies a favourable trend for policyholders in the Australian property insurance sector. This environment typically fosters competitive pricing with well managed risks maintaining rates on renewal and obtaining broader coverage. Premium rates are showing stability with low to moderate risks obtaining rollover or single digit increases.
High interest rates, continuing technological advancement and emerging capacity are the main drivers producing favourable outcomes for policyholders.
Key factors that currently have influence on the current market are summarised below:
High interest rates: Long-tail classes of insurance are attractive to insurers due to high interest rates. Insurers are focused on the weight of premium (referred to as top line growth), in order to benefit from investing their capital at higher interest rates.
Increased competition driven by new entrants: With local incumbent insurers are competing to increase their top line, premium rates are reducing to retain market share.
Role of technology: Artificial intelligence (AI), machine learning, and big data analytics are all being deployed by insurers. These technologies have aided underwriting, claims processing, customer service, and risk assessment, improving efficiency and customer experience.
After several years of large increases on high-hazard industries or risks with assets exposed to natural perils, rates have slowed. Increases of 5%-10% should be expected.
Underinsurance remains a significant risk particularly regarding business interruption claims.
Jasmin Gabrielli
Jasmin is an experienced insurance professional with over 11 years of general broking expertise across a diverse range of general and hard-to-place specialty lines specifically in commercial applications.
The end of the 2024 financial year saw significant increases in competition between insurers locally.
The combination of increased insurer appetite, new market entrants, and local underwriting agencies signifies a favourable trend for policyholders in the Australian property insurance sector. This environment typically fosters competitive pricing with well managed risks maintaining rates on renewal and obtaining broader coverage. Premium rates are showing stability with low to moderate risks obtaining rollover or single digit increases.
High interest rates, continuing technological advancement and emerging capacity are the main drivers producing favourable outcomes for policyholders.
Key factors that currently have influence on the current market are summarised below:
High interest rates: Long-tail classes of insurance are attractive to insurers due to high interest rates. Insurers are focused on the weight of premium (referred to as top line growth), in order to benefit from investing their capital at higher interest rates.
Increased competition driven by new entrants: With local incumbent insurers are competing to increase their top line, premium rates are reducing to retain market share.
Role of technology: Artificial intelligence (AI), machine learning, and big data analytics are all being deployed by insurers. These technologies have aided underwriting, claims processing, customer service, and risk assessment, improving efficiency and customer experience.
After several years of large increases on high-hazard industries or risks with assets exposed to natural perils, rates have slowed. Increases of 5%-10% should be expected.
Underinsurance remains a significant risk particularly regarding business interruption claims.
Jasmin Gabrielli
Jasmin is an experienced insurance professional with over 11 years of general broking expertise across a diverse range of general and hard-to-place specialty lines specifically in commercial applications.
