Insurance Market Update: Construction, Third Party Public and Product Liability
Q2, 2024
Australia's insurance market is experiencing a resurgence of interest from international insurers who recognise the potential and are establishing local presence in Australia. This increased competition will benefit local businesses with more options and potentially better outcomes.
The Australian construction liability market is showing positive signs, with increased competition from the existing insurers and new entrants to the market, this should result in the current trend of rate increases easing and opportunities for reductions emerging.
Current key trends:
Improved profitability: Insurers are reporting better results, making them more open to writing construction liability insurance.
New players: overseas insurers are entering the market, increasing competition, and leading to more competitive rates, and broader coverage particularly for good quality projects.
Market stabilisation: The cost of insurance is stabilising, offering more certainty for contractors when budgeting insurance costs.
Focus on risk mitigation: Insurers are placing more emphasis on risk management practices when evaluating projects. Businesses with strong risk mitigation plans may see better rates.
Claims: Insurers continue to show limited tolerance to contractors with a history of high insurance claims (poor loss ratios) from demonstrably poor work practices or defective workmanship.
Overall, the outlook for the construction liability market in Australia is positive. With more competition and a focus on risk management, construction companies may benefit from more favourable insurance terms in the coming months.
Australia's insurance market is experiencing a resurgence of interest from international insurers who recognise the potential and are establishing local presence in Australia. This increased competition will benefit local businesses with more options and potentially better outcomes.
The Australian construction liability market is showing positive signs, with increased competition from the existing insurers and new entrants to the market, this should result in the current trend of rate increases easing and opportunities for reductions emerging.
Current key trends:
Improved profitability: Insurers are reporting better results, making them more open to writing construction liability insurance.
New players: overseas insurers are entering the market, increasing competition, and leading to more competitive rates, and broader coverage particularly for good quality projects.
Market stabilisation: The cost of insurance is stabilising, offering more certainty for contractors when budgeting insurance costs.
Focus on risk mitigation: Insurers are placing more emphasis on risk management practices when evaluating projects. Businesses with strong risk mitigation plans may see better rates.
Claims: Insurers continue to show limited tolerance to contractors with a history of high insurance claims (poor loss ratios) from demonstrably poor work practices or defective workmanship.
Overall, the outlook for the construction liability market in Australia is positive. With more competition and a focus on risk management, construction companies may benefit from more favourable insurance terms in the coming months.
Australia's insurance market is experiencing a resurgence of interest from international insurers who recognise the potential and are establishing local presence in Australia. This increased competition will benefit local businesses with more options and potentially better outcomes.
The Australian construction liability market is showing positive signs, with increased competition from the existing insurers and new entrants to the market, this should result in the current trend of rate increases easing and opportunities for reductions emerging.
Current key trends:
Improved profitability: Insurers are reporting better results, making them more open to writing construction liability insurance.
New players: overseas insurers are entering the market, increasing competition, and leading to more competitive rates, and broader coverage particularly for good quality projects.
Market stabilisation: The cost of insurance is stabilising, offering more certainty for contractors when budgeting insurance costs.
Focus on risk mitigation: Insurers are placing more emphasis on risk management practices when evaluating projects. Businesses with strong risk mitigation plans may see better rates.
Claims: Insurers continue to show limited tolerance to contractors with a history of high insurance claims (poor loss ratios) from demonstrably poor work practices or defective workmanship.
Overall, the outlook for the construction liability market in Australia is positive. With more competition and a focus on risk management, construction companies may benefit from more favourable insurance terms in the coming months.
