The commercial insurance market in Australia in 2024 experienced a period of gradual stabilisation after years of challenging conditions.
Into 2025 the Australian commercial insurance market is anticipated to grow steadily with demand driven by increasing awareness of risks such as cyber-attacks, climate related disasters, and regulatory challenges. However, challenges such as high reinsurance costs and ongoing claims inflation in sectors like property and liability will likely put pressure on profitability.
Cyber coverage is expected to expand significantly as businesses face growing cyber threats. Insurers will likely adjust policy terms and pricing to reflect the evolving risk landscape.
Climate change will continue to drive higher premiums in sectors exposed to natural disasters, particularly in property insurance.
Demand for Health and Liability Insurance lines is likely to grow due to increased regulation and heightened awareness of risks in industries like healthcare and construction.
Insurers are expected to invest heavily in Digitization and Innovation technology to improve customer experience and operational efficiency. Data analytics, AI, and automation will play critical roles in product customization and claims management.
Regulatory, ESG and Economic factors will continue to impact pricing and demand for commercial insurance products.
Adequacy of Sums Insured*
One of the key features of the ReSure platform is the ability to give those responsible for protecting an organisation’s assets and risk exposures a very clear picture of whether trends such as those outlined above are likely to have an extraordinary impact on their organisation.
*See our Claims and Underinsurance news article
