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As brokers, we see it every year - businesses leaving their insurance renewals to the last minute, leading to rushed decisions, limited market options, and missed opportunities for more competitive terms or better-suited coverage. When policies are reviewed in haste, critical risks can be overlooked, renewal terms may be accepted without challenge, and the chance to explore broader insurer appetite or negotiate on pricing and conditions is often lost.
Early engagement allows brokers to fully understand a client’s evolving risk profile, approach a wider panel of insurers, and tailor a strategy that aligns with the business’s current and future needs. Especially in the current environment of increasing insurer competition and changing underwriting appetites, being proactive gives businesses a genuine advantage - whether it’s accessing broader cover, securing better premiums, or improving claims outcomes through more fit-for-purpose programs.
After several years of sustained premium increases, the Australian business insurance market is beginning to show signs of stabilisation. The rapid premium growth that characterised the hard market phase - driven by rising reinsurance costs, inflationary pressures, climate-driven catastrophe events, and capacity constraints - is now easing. According to recent commentary from leading insurance publications, 2025 is expected to bring a more moderate pricing environment, particularly in lines where competition is increasing and loss ratios have improved.
Specifically, liability insurance premiums have seen minimal increases, averaging between 0–2% in the first half of 2024. Additionally, cyber insurance rates declined by 2% in the first quarter of 2024, with insurers expanding proactive services to mitigate cyber risks.
For businesses, this evolving market presents an opportunity to reassess their insurance strategies - particularly around coverage adequacy, insurer relationships, and risk management investments. For brokers, it’s a critical moment to engage early with clients, access broader insurer appetite, and leverage a more competitive environment to negotiate on terms, pricing, and coverage extensions.
As of May 2025, Australian insurers are broadening their risk appetite, marking a shift from the stringent underwriting practices characteristic of the previous hard market cycle. This evolution is driven by improved profitability, increased market competition, and a strategic focus on innovation and customer-centric solutions.
Furthermore, insurers are leveraging advanced technologies and data analytics to enhance risk assessment and pricing strategies. This approach enables them to offer more tailored and comprehensive coverage solutions, addressing emerging risks such as cyber threats and climate-related exposures. The adoption of innovative product offerings, including parametric insurance, reflects the industry's commitment to meeting the evolving needs of businesses and communities.
Overall, the Australian insurance market is transitioning towards a more flexible and responsive model, with insurers expanding their risk appetite to support economic growth and resilience in the face of changing risk landscapes.
As of May 2025, the Australian SME insurance market is experiencing intensified competition among insurers, driven by evolving customer preferences and technological advancements. This shift reflects SMEs' desire for more tailored and flexible insurance solutions, prompting insurers to broaden their offerings and enhance digital platforms to meet these changing demands.
In response to this competitive landscape, insurers are increasingly focusing on innovation and customer-centric strategies. The National Insurance Brokers Association (NIBA) emphasizes the importance of delivering good customer outcomes in an evolving insurance landscape, managing risks to ensure insurance remains affordable and accessible, and recognising the role of insurance brokers as trusted professional advisors. This environment encourages insurers to differentiate themselves through enhanced service delivery, product innovation, and strategic partnerships, aiming to capture and retain SME clients in a dynamic market.
Climate change continues to pose significant challenges for Australian businesses. The increasing frequency and severity of natural disasters is prompting small businesses to review their climate risk-related policies and, in many instances, extend their cover. That can be an expensive affair, which is why many owners are mitigating the cost by opting for higher excesses on their various policies.
Climate change continues to pose significant challenges for Australian businesses. Approximately 1 in 12 properties (1.2 million) have some level of flood risk, with at least 230,000 at risk of flooding every 20 years. Furthermore, 5.6 million homes are at risk of bushfires.
Recent events, such as the March 2025 floods in Hervey Bay, have highlighted the financial strain on small businesses, with some facing damages up to $300,000. These incidents underscore the importance of adequate insurance coverage and the challenges in claims processing.
Regulatory changes are influencing the insurance landscape. The National Insurance Brokers Association (NIBA) has highlighted the importance of delivering good customer outcomes in an evolving insurance landscape, managing risks so that insurance remains affordable and accessible, and the role of an insurance broker as a trusted professional advisor.
Given the current climate, businesses should consider the following:
Risk Assessment: Regularly evaluate exposure to climate-related risks and update insurance coverage accordingly.
Policy Review: Stay informed about regulatory changes that may impact insurance obligations and costs.
Cybersecurity Measures: Invest in robust cybersecurity protocols to mitigate risks and potentially lower cyber insurance premiums.
Legal Compliance: Ensure compliance with new privacy laws to avoid potential liabilities and increased insurance costs.
By proactively addressing these areas, businesses can better navigate the evolving insurance landscape in Australia.
Our Services
Liability insurance safeguards your business from claims of negligence, injury, or property damage. With our tailored solutions, you can operate with confidence, knowing you have the necessary coverage to protect your financial interests and reputation.
Protect your physical assets with our property insurance. This coverage secures your business premises and contents against potential damage or loss from incidents such as fire, theft, or natural disasters, ensuring your investments are safe and sound.
Designed specifically for professionals, professional indemnity insurance protects against claims of negligence or errors in your service delivery. This essential coverage ensures that your business remains secure while you focus on providing excellent services to your clients.
Unexpected disruptions can significantly impact your revenue. Business interruption insurance helps cover lost income and ongoing expenses during these challenging times, allowing you to maintain your financial stability while you recover and get back on track.
Our experienced insurance advisers collaborate with you to understand your unique insurance needs and provide customised solutions to protect your business. We are committed to helping you navigate the complexities of insurance with confidence, so you can make informed decisions that align with your risk management and financial goals.
In todayu2019s digital landscape, protecting your business from cyber threats is more critical than ever. Cyber insurance offers comprehensive coverage against financial losses due to data breaches, cyberattacks, and other online threats, helping you safeguard sensitive information and maintain customer trust.
Our expert risk advisers work closely with you to identify, assess, and mitigate potential risks facing your business. With our risk management services, you can develop informed strategies that enhance your resilience and contribute to your business's long-term success.
Navigating the claims process can be daunting. Our claims management support team is here to guide you every step of the way, ensuring a smooth experience and prompt resolution of your insurance claims. We are committed to advocating for your needs and helping you get back to business quickly.
Our clients consistently praise our personalised service and commitment to finding tailored business insurance solutions that effectively manage their risks and protect their operations. We pride ourselves on building strong relationships and delivering results that exceed expectations.
Excelsior Insurance Services Pty Ltd (ABN 70 680 835 509) is a Corporate Authorised Representative No: 001311524 of SureInsure Pty Ltd (ABN 11 642 332 698) AFSL 525177.
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