Insurance Market Update: Property
Capacity
Market capacity is stabilising after years of volatility, with new entrants in some lines and re-commitment from global reinsurers.
Underwriting remains cautious - capacity is available, but not for all risks.
Except selective pricing, especially in sectors with poor claims history, high-risk exposures, or insufficient risk.
Claims Inflation
Cost of rebuilding continues to rise, driven by labour shortages, material inflation, and ongoing supply chain challenges.
Insurers are reassessing replacement cost estimates, so accurate and current asset valuations are more critical than ever.
Londer lead times and higher sums insured are increasing total claim values - even for smaller incidents.
Important to consider setting adequate indemnity periods to ensure the business interruption cover sees the claim through to full financial recovery and return to normal trading.
Climate Exposures
Australia remains highly exposed to natural catastrophe risk:
Floods are now impacting regions traditionally considered low-risk
Bushfire seasons are extending and intensifying due to hotter, drier conditions.
Cyclones continue to threaten coastal infrastructure
Insurers are tightening terms in high-exposure zones and applying geographic pricing differentials.
Risk mitigation measures (eg., elevation, fireproofing, business continuity plans) are increasingly being factored into renewal outcomes.
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.
Capacity
Market capacity is stabilising after years of volatility, with new entrants in some lines and re-commitment from global reinsurers.
Underwriting remains cautious - capacity is available, but not for all risks.
Except selective pricing, especially in sectors with poor claims history, high-risk exposures, or insufficient risk.
Claims Inflation
Cost of rebuilding continues to rise, driven by labour shortages, material inflation, and ongoing supply chain challenges.
Insurers are reassessing replacement cost estimates, so accurate and current asset valuations are more critical than ever.
Londer lead times and higher sums insured are increasing total claim values - even for smaller incidents.
Important to consider setting adequate indemnity periods to ensure the business interruption cover sees the claim through to full financial recovery and return to normal trading.
Climate Exposures
Australia remains highly exposed to natural catastrophe risk:
Floods are now impacting regions traditionally considered low-risk
Bushfire seasons are extending and intensifying due to hotter, drier conditions.
Cyclones continue to threaten coastal infrastructure
Insurers are tightening terms in high-exposure zones and applying geographic pricing differentials.
Risk mitigation measures (eg., elevation, fireproofing, business continuity plans) are increasingly being factored into renewal outcomes.
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.
Capacity
Market capacity is stabilising after years of volatility, with new entrants in some lines and re-commitment from global reinsurers.
Underwriting remains cautious - capacity is available, but not for all risks.
Except selective pricing, especially in sectors with poor claims history, high-risk exposures, or insufficient risk.
Claims Inflation
Cost of rebuilding continues to rise, driven by labour shortages, material inflation, and ongoing supply chain challenges.
Insurers are reassessing replacement cost estimates, so accurate and current asset valuations are more critical than ever.
Londer lead times and higher sums insured are increasing total claim values - even for smaller incidents.
Important to consider setting adequate indemnity periods to ensure the business interruption cover sees the claim through to full financial recovery and return to normal trading.
Climate Exposures
Australia remains highly exposed to natural catastrophe risk:
Floods are now impacting regions traditionally considered low-risk
Bushfire seasons are extending and intensifying due to hotter, drier conditions.
Cyclones continue to threaten coastal infrastructure
Insurers are tightening terms in high-exposure zones and applying geographic pricing differentials.
Risk mitigation measures (eg., elevation, fireproofing, business continuity plans) are increasingly being factored into renewal outcomes.
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.
