The 2025 financial year continued as a period of growth and activity for Bellrock’s Claims Team. Some key statistics from this period include:
- Claims reserves of over $95,535,892.44 are currently being managed by Bellrock.
- An average of 73 new claims are managed per month for Bellrock clients and an average of 34 claims closed per month.
- Over the last 12 months (from 2 June 2024), a total amount of $6,657,519.93 has been paid in terms of claims advocated by the Bellrock Claims Team across all insurance classes.
The breakdown across business lines for the settlements and payments obtained by Bellrock’s Claims Team totalling $6,657,519.93 are illustrated in the table below.
In terms of new notifications for the 2025 financial year, the Bellrock Claims Team has continued to see a steady flow of activity with 872 notifications. The breakdown across business lines is illustrated in the table below.
Trends in claims
Overall, claims throughout the 2025 financial year have continued to trend in accordance with our January 2025 Market Update – Claims, however, financial lines has now taken the top spot in terms of new notifications with motor, public liability, and plant & machinery not far behind.
Notable developments across business lines include:
- Bellrock continues to notice a mixed experience as far as the quality of insurers’ claims handling propositions across all classes of business. As such, Bellrock continues to use claims service as a critical factor underpinning the recommendation and selection of an insurance partner for our clients. Still, Bellrock recommends that equal consideration should be given in terms of insurer selection with regards to the extent of cover provided and claims service excellence.
- As noted in our January 2025 Market Update – Claims, the cost of extreme weather events continues to rise in Australia with insurers paying approximately $2.1B a year to policyholders for extreme weather events over the last three decades. However, over the last five years the annual average has ballooned to $4.5B. This financial year, the Insurance Council of Australia (ICA) has declared additional Insurance Catastrophes1 for:
- The Mid North Coast NSW and Hunter flooding event occurring on 17 May 2025; and
- Ex-Tropical Cyclone Alfred and subsequent storms occurring on 28 February 2025 which impacted southeast Queensland and northern NSW regions.
- Bellrock continues to see longer lead times when it comes to sourcing key parts for material damage repairs across motor and machine, plant, and equipment losses. Additionally, there are skilled labour shortages in a number of areas across the engineering and construction sectors plus costs inflation associated with the rectification of design/construction defects.
- The recent Federal Court case of Allianz Australia Insurance Limited v Uniting Church in Australia Property Trust (NSW) [2025] FCAFC 8 has reinforced the importance of notification of circumstances as soon as reasonably practicable for those insured’s with “claims made” policies. See our article here.The Allianz case also cast doubt on whether prior known circumstances exclusions remain a viable avenue for insurers to rely upon. The benefits of continuous cover with the same “claims made” insurer are explored here. The benefits of prompt notification for improved claims outcomes are explored here.
- Bellrock continues to see large building defect claims in residential and commercial high-rise buildings including latent claims for flammable cladding and emerging claims for defects in cladding rectification projects.
- The Cyber Security Act’s (CSA) Ransomware Payment Reporting obligation came into effect on 30 May 2025 and requires businesses to report within 72 hours after making a ransomware payment or becoming aware that a ransomware payment has been made. The other key features of the CSA regarding the mandated minimum cyber security standard for smart devices and the establishment of a Cyber Incident Review Board have also had Cyber Security Rules introduced in 2025.
- Bellrock continues to see a rise in payment re-direction losses stemming from email account compromises. Such losses highlight the importance of regular IT health checks as well as payment verification processes.
- The new Statutory Tort for Serious Invasions of Privacy (STSIP) comes into effect on 10 June 2025 (see our article here) following the passage of the Privacy and Other Legislation Amendment Bill 2024 (Cth). Amongst other requirements to bring a STSIP claim, there must be proof that a defendant intruded upon a plaintiff’s seclusion or misused their information, and a plaintiff must also show the defendant’s actions were either intentional or reckless. Further, Bellrock has not seen a rise in claims following the Victorian case of Lynn Waller v. Romy Barrett [2024] VCC 962 wherein an Australian court recognised a distinct cause of action for invasion of privacy in the common law separate from the established tort of breach of confidence.
- Following the High Court’s decision in Bird v. DP [2024] HCA 41, which held that vicarious liability cannot be imposed absent an employment relationship, Bellrock has seen plaintiffs amend their allegations to name individuals directly and/or allege a basis other than vicarious liability (i.e. negligence) to name entities where no employment relationship existed between the entity and the perpetrator or tortfeasor.
- Bellrock continues to see a rise in employment claims following redundancies but has not observed a rise in employment claims following the Closing the Loopholes No. 2 Amendments to the Fair Work Act entitling many employees to the “right to disconnect.”
- On 7 May 2025, the Full Federal Court dismissed the appeal of the unsuccessful Zonia and Baron securities class actions against Commonwealth Bank of Australia (CBA). Bellrock discussed Zonia and Baron in its July 2024 Market Update – Claims wherein we noted such defence judgments have aided in the reduction of securities class actions. In dismissing the appeal, the Full Federal Court held that whilst CBA did breach its continuous disclosure obligations, the appellant/plaintiff shareholder class did not prove loss caused by the breach.
- Our recent article High Court Ruling Breathes Life Back Into NSW Class Actions discussed the High Court’s ruling in Lendlease Corporation Limited v Pallas, determining that the NSW Supreme Court has the power to make a form of procedural order known as a ‘soft class closure’ order. Such ‘soft class closure’ orders should help facilitate earlier resolution of claims by giving the parties insight into the class size/quantum for purposes of mediation.
- Insolvencies continue to be on the rise particularly in the construction space highlighting the need for clients to consider counter party contracting risk and to ensure that sub-contractors maintain adequate insurances.
- Bellrock continues to see an increase in workplace injuries which often lead to Work, Health, and Safety regulatory activity and knock on personal injury claims. As noted in our January 2025 Market Update – Claims, personal injury litigation continues to distend public liability losses with increased legal costs and psychiatric injuries claims as the main drivers.
- The Aged Care Act 2024 (Cth) (ACA) is set to commence on 1 July 20252. The ACA seeks to improve the safety and quality of aged care services with civil penalties available for providers who fail to meet the new standard. The ACA comes over four years after the issuance of the final report of the Royal Commission into Aged Care Quality and Safety.
1 Insurance Council: Current Catastrophes
2 New Aged Care Act
Continue reading our full range of market updates:
- Insurance Market Overview: July 2025
- Property
- Commercial General Liability
- Motor
- Contractors Plant & Equipment
- Renewable Energy
- Strata
- Claims
- Workplace Risk
- Executive & Professional Risk
- Construction
