Underwriting appetite remains limited for single policies insuring individuals. The preference across this class remains corporate group policies. Premiums have remained static on policies with a total premium of less than $5,000 and where there are no material changes 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, with insurers maintaining a clear focus on accounts where most travel is business related. Policies with heavy leisure components remain challenging to place, reflecting the higher claims frequency and rising costs associated with leisure travel.
Leisure related claims, particularly those attached to international trips, have been a significant driver of losses which has led to the definitions for Directors and Executives Private Leisure Travel being updated to clarify coverage intent. Furthermore, policyholders declaring more than 25 per cent of travel as leisure travel remain harder to place.
Despite challenging economic and geopolitical conditions, market capacity remains strong and continues to meet the demands of increasing domestic and international travel. Competition among insurers is heightened, with many broadening their coverage to retain and secure accounts and offering increased sub-limits and greater flexibility around exclusions. While exclusions related to Russia and Ukraine remain commonplace, COVID-19 restrictions and exclusions have now largely disappeared.
Premiums are generally rolling over, with reductions available where exposures and loss histories remain stable. Business travel premiums remain relatively stable, while leisure travel premiums continue to rise due to claims activity across the sector. Claims volumes overall remain consistent, with the most common causes being cancellations due to weather or lost and delayed baggage. Claims costs, however, are trending upward, driven by inflation and cost of living pressures. Replacement items and rebooking expenses continue to be the primary contributors to this increase.
Group personal accident and sickness
The Personal Accident market (voluntary workers, journey and sports insurance) is experiencing continued uplift in policy requirements as employers enforce mandatory office days. With more staff returning to the office and a decline in remote work, commuting has become more frequent, driving a greater need for journey cover. This shift has led to higher claims activity, particularly linked to commuting incidents.
Medical expense inflation is placing sustained pressure on insurer rates and policy structures. Insurers are recommending reviews of weekly benefit caps to ensure they remain aligned with rising wage levels, while employers and policyholders are increasingly requesting higher wage benefit payouts to reflect current economic conditions and the broader cost-of-living increases across Australia.
In the sporting sector, premium increases remain modest and steady, while overall demand for improved coverage continues to grow in line with workplace and economic shifts.
Inpatriate/expatriate medical expenses
The travel industry is thriving. Larger volumes of employers and employees are working abroad globally, alongside increasing numbers of seconded staff as 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: January 2026
- Claims
- Workers Compensation
- Corporate and Multinational Risk
- Construction, Property and Development
- Financial Lines
