Market appetite for one off policies for individuals continues to be unfavourable, with insurers continuing to target corporate group policies. Premiums have remained static on policies with premium less than $5,000 where there is no material change in exposure or loss experience.
Larger corporate and risk managed accounts generating more material premium pools are seeing rate reductions of between 10 to 15 per cent subject to no material change in exposure information or loss history.
Corporate travel
The corporate travel market continues to soften. Market capacity continues to meet the demands of apparent increases in domestic and international travel. This, notwithstanding challenging economic and geo political challenges.
Claims volumes remain consistent, with the most common cause of claim being either cancellations due to weather or lost/delayed baggage. Claims costs on the whole are increasing due to inflation for replacement items alongside a higher demand for rebooking flights and accommodation.
Insurers are maintaining comprehensive policy wordings with a broad appetite for coverage. While exclusions related to Russia and Ukraine remain commonplace, COVID-19 related restrictions and exclusions are now largely obsolete.
Incidentally, leisure travel on the back of business trips remains a trend: particularly for international travel. Leisure related claims have been the gravamen of corporate travel losses. Policyholders who declare more than 25 per cent of travel to be “leisure” related are harder to place, and definitions for Directors and Executives Private Leisure Travel are being updated to clarify coverage intent. See our article here.
In terms of appetite, insurers are focused on traditional corporate travel policies, leading to heightened competition in this space. While premiums for leisure travel continue to rise due to claims activity across the sector, as mentioned above, business travel premiums have remained relatively stable and pricing reductions are available.
Group personal accident and sickness
The Personal Accident market (voluntary workers, journey and sports insurance) is experiencing continued uplift in policy requirements as employers continue to set mandated office days resulting in more staff working in the office and a decline in remote work.
This increase in office-based work has led to a higher demand for improved coverage and has resulted in a rise in claims, particularly in relation to the additional commute to and from the office, driving a greater need for commute-based journey cover.
Medical expense inflation continues to put pressure on insurer rates. As a result, insurers are generally recommending a review of weekly benefit caps to ensure they remain aligned with rising wage levels. In line with the ongoing cost of living increases across Australia, policyholders are requesting higher wage benefit payouts to better reflect the current economic conditions.
In the sporting sector, insurers are continuing to implement slight premium increases, which is expected to remain steady.
Inpatriate/expatriate medical expenses
The travel industry is thriving. Larger volumes of employers and employees are working abroad globally, there are increased numbers of seconded staff and more and more companies are expanding internationally. We expect to see this trend continue at pace which will in turn lead to greater opportunities for overseas work for employees.
Market appetite for one-off policies for individuals continue to be unfavourable, with Insurers continuing to target group policies. Premiums have remained steady and consistent with previous years.
Continue reading our full range of market updates:
- Insurance Market Overview: July 2025
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