Business Insurance Price Rises Showing Signs of Slowdown
Business Insurance Price Rises Showing Signs of Slowdown
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Rates across the majority of commercial lines are still experiencing increases, but the pace of the rise is starting to weaken, according to a recent webinar by actuarial firm Finity.
The firm suggests that higher rate increases will be more targeted where necessary, while the majority of risks can expect more moderate rate adjustments in the upcoming financial year FY24.
Despite this slowdown, financial lines stand out as an exception, with prices projected to remain stagnant or even decline. This trend has continued over the past six months and marks a departure from the previous years of ever-increasing rates. Finity attributes this shift to increased competition in directors’ and officers’ insurance, which has even led to rate reductions and signals a transition from a hard market cycle to a soft market cycle.
The recent Finity webinar concludes the release of Optima, the firm's annual report on the state of the general insurance industry, ongoing challenges, and emerging trends. Commercial lines' gross written premium (GWP) experienced double-digit growth for the fifth consecutive year in FY23, bringing the estimated GWP pool to over $27 billion-nearly double what it was in FY17.
Factors Driving Increased GWP
Finity attributes the significant increase in GWP to strong rate increases during the hard market phase, as well as the influx of capacity from overseas in certain segments. This increased competition has not only provided market players with more options but has also supported overall top-line growth. However, signs indicate that the hardening market is tapering off.
The Finity webinar also highlighted the impact of technology transformation on distribution trends within the insurance industry. The shift towards digital platforms has created new opportunities for efficiency and value, although at a higher cost. Maintaining or expanding profitability remains a crucial consideration for industry participants. Additionally, technology has enabled brokers to enhance their services by delivering better knowledge and insights to clients, making it a key enabler for the broker channel.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Club Marine, Australia's leading provider of recreational boat insurance, has expanded its offerings to include specific coverage for race boats while they are on land. This development comes through a new partnership with the Australian Offshore Powerboat Club (AOPC), aiming to address the unique insurance needs of race boat owners. - read more
The inaugural Great Barrier Reef Commercial Marine Conference was held in Cairns on 11 March 2026, bringing together 50 industry leaders, operators, and suppliers to discuss the future of Australia's commercial marine sector. A significant highlight of the event was the launch of the Australian Commercial Marine Economic Impact Study (EIS). - read more
The Australian Prudential Regulation Authority (APRA) has announced emergency measures to address significant premium increases in the commercial auto insurance sector. Effective immediately, insurers are prohibited from implementing baseline premium hikes exceeding 25% without clear justification. - read more
When you're on the journey to owning your dream home, securing the right home loan is as critical as choosing the perfect location. The benefits of using online home loan calculators can't be overstated, as they wield the power to illuminate the murky depths of mortgage rates, terms, and payments with surprising precision. - read more
Debt consolidation is a strategy often utilized by individuals seeking to take control of their financial health. At its core, debt consolidation involves combining multiple debts into a single, more manageable loan, typically with more favorable terms such as a lower interest rate or a longer repayment period. - read more
Starting and running a business in Australia can be an exhilarating experience, full of opportunities for growth and success. However, it also comes with its fair share of risks and uncertainties. From unexpected natural disasters to potential legal disputes, the threats to the sustainability of a business are ever-present. This is where business insurance becomes pivotal as a protective tool for Australian enterprises. It provides the much-needed safety net to help businesses mitigate potential losses and continue operations with confidence. - read more
Knowledgebase
Mortgage: A loan in which the borrower (the mortgagor) offers a property and land as security to the lender (the mortgagee) until the loan is repaid. Repayments of the loan are usually made on a monthly basis over a long period of time, typically 25 years.
