The 2026 financial year has continued to be a period of growth and activity for Bellrock’s Claims Team. Key statistics on claims currently managed by the team include total claims reserves of over $121,000,000, an average of 95 new claims managed each month with an average of 52 claims closed per month, and a total of $2,911,520.55 paid across all insurance classes over the last 12 months as of 23 May 2026.
The breakdown across business lines for settlements and payments achieved by the team this financial year totalling $2,911,520.55 is illustrated below:
In terms of new notifications for the 2026 financial year, Bellrock has continued to see a steady flow of activity with 1,130 notifications being managed by the team. The breakdown across business lines is illustrated below.
Claims trends
Claims trends remain active across financial lines, motor, plant and machinery, property, cyber and construction disputes. Economic stress may increase insolvency-linked and professional liability claims. Overall, during the 2026 financial year, claims continued to trend in accordance with our Claims Market Update: January 2026, with financial lines remaining top in terms of new notifications and motor, public liability and property taking the next three spots.
Due to limited severe catastrophic weather losses among Bellrock’s clients, coupled with growth in long-tail liability claims, reserves under management have increased by over 20% while large first party settlement payments, usually driven by catastrophe-exposed classes like property, have waned. This contrast between first party and third-party loss developments reflects the classic long-tail nature of liability insurance, including professional indemnity, general liability and D&O, where years are needed to crystallise legal liability losses as opposed to interim payments for legal or investigation costs. This pattern also highlights how litigation plays a central role in driving the long-tail nature of liability insurance, as the oldest claims in most liability portfolios tend to involve matters in complex litigation.
The cost of extreme weather events continues to rise in Australia, with insurers paying approximately $2.1B per year to policyholders for extreme weather events over the last three decades. Over the last five years the annual average has increased to $4.5B. The Insurance Council of Australia (ICA) noted that extreme weather losses in the first half of 2025 totalled $1.8B, with the number expected to increase once full year results are tallied. We explored the economic impact of catastrophic losses further in our article The economics of extremes: Understanding catastrophe losses and the re-insurance ripple effect. This financial year, the ICA declared Insurance Catastrophes or Significant Events for the following:
- Victoria bushfires occurring from 7 January 2026
- Southeast Queensland and NSW severe storms and hail occurring between 20 November 2025 and 27 November 2025
- Northern Territory and Queensland flooding occurring in March 2026
- Bondi (NSW) Terrorist Incident occurring in December 2025
- Brisbane hailstorm occurring on 26 October 2025.
Bellrock continues to observe longer lag times in sourcing key parts for material damage repairs across motor and machinery, plant and equipment losses. Skilled labour shortages persist across portions of the engineering and construction sectors, and ongoing inflation in rectification costs for design and construction defects continues to significantly impact quantum. We discussed the impact of rising fuel prices in our article here. Property damage caused by human error and non-catastrophic weather incidents at job sites has also contributed to a noticeable rise in contract works claims.
As reflected in the ongoing rise in financial lines notifications this financial year, Bellrock continues to see large building defect claims in residential and commercial high-rise buildings and other construction projects giving rise to professional indemnity claims. Bellrock noted the impact of latent conditions on construction projects in our article here.
Bellrock has also noted the rise of cyber breaches caused by threat actors exploiting vulnerabilities in technologies used by managed service providers and highlighted how critical cyber resilience is for the hospitality industry in our article on cyber resilience. Bellrock continues to see frequency in payment redirection losses stemming from email account compromises and spoofing frauds, highlighting the need for regular IT health checks and strong payment verification processes. We discussed this trend in more detail in our article here.
Insolvencies remain on the rise, particularly in the construction space, highlighting the need for clients to consider counterparty contracting risk and to ensure that subcontractors maintain adequate insurances. Trade credit insurance remains an important product to consider in this environment, and we commented on tips for managing credit risk in our article Navigating credit risk in 2026: Essential tips. We also wrote about the importance of contract certainty in relation to credit application forms and other terms and conditions in our article here.
Workplace injuries, which often lead to Work Health and Safety regulatory activity and consequential personal injury claims, remain a concern. Personal injury litigation continues to distend public liability losses, with increased legal costs and psychiatric injury claims as the main drivers. We wrote about the importance of controls and governance in mitigating risk in the WHS space in our article on the Crinum industrial manslaughter prosecution. Bellrock also highlighted increased regulatory scrutiny around psychosocial risk in the workplace in our article here.
There remains frequency in employment claims and complaints following redundancies, terminations and allegations of workplace harassment and discrimination. This trend highlights the need for strong and proactive HR processes that are documented and adhered to, as well as sound contemporaneous record-keeping practices. These represent the two biggest variables that can make or break the defence of subsequent claims or complaints.
Breaches of confidentiality remain a source of claims by third parties, particularly following cyber breaches or the unintended disclosure of confidential information.
Legal and regulatory developments
ASIC’s claims handling and complaints focus means insurer conduct remains under scrutiny. Legal developments in D&O, cladding and valuers also affect claims strategy.
Bellrock also discussed the recent case of Victorian Building Authority v Fall-Armytage, which clarified that the coverage trigger under a Domestic Building Insurance Policy is activated when damage or loss is sustained, not when the defect giving rise to the damage or loss occurred.
We wrote about the landmark Federal Court class action case Owners – Strata Plan No 87231 v 3A Composites GmbH (No 10), wherein the Federal Court refused to hold a manufacturer and distributor of cladding liable for damages caused by the application of ACP cladding. We also noted the potential insurance coverage implications posed by cladding defect claims in our article here.
Bellrock continues to monitor developments in the D&O insurance space following the New South Wales Supreme Court’s dismissal of an application by a shareholder of SkyCity Entertainment Group seeking leave to file a derivative action against former directors and officers alleged to have breached duties of care regarding AML/CTF obligations, which led to AUSTRAC levying a $67M fine against SkyCity. Bellrock recently noted the trending securities claim litigation precedents in the Nuix, Brambles and CBA class actions, which give further guidance on how continuous disclosure liability will be determined by Australian courts. The recent success of defendants in defending securities class actions will cause plaintiff firms and litigation funders alike to reconsider their risk appetite for funding and maintaining such actions. For further detail on Brambles specifically see our article here.
As noted in our Claims Market Update: January 2026, the new Statutory Tort for Serious Invasions of Privacy came into effect on 10 June 2025, following the passage of the Privacy and Other Legislation Amendment Bill 2024 (Cth). In October 2025, the NSW District Court applied the new legislation in Kurraba Group Pty Ltd & Anor v Williams [2025] NSWDC 396 to grant injunctive relief to a plaintiff whose wedding photos were misused by a defendant who opposed a property redevelopment project proposed by the plaintiffs. To date, Bellrock has noted no other major developments in relation to the Statutory Tort for Serious Invasions of Privacy.
The risk environment for faith-based organisations and other not-for-profits continues to evolve, most recently in the case of AA v The Trustees of the Roman Catholic Church, wherein the High Court held that a non-delegable common law duty of care could be breached in respect of harm caused by an intentional criminal act. We touched upon other evolving risk factors facing faith-based organisations and not-for-profits in our article here.
AI and technology impact
AI claims triage, fraud detection and digital lodgement can improve speed but may frustrate complex claims requiring judgement.
What policyholders should do now
Select insurers with proven claims performance. Prepare claims narratives before renewal, document risk mitigation measures, preserve evidence and review policy triggers before an event occurs. Bellrock continues to observe a mixed experience in the quality of insurers’ claims handling across all classes of business and remains steadfast in flagging claims service as a critical factor underpinning the recommendation and selection of an insurance partner for our clients, particularly as the soft market cycle continues. Bellrock continues to recommend that equal consideration be given to insurer selection with regards to both the extent of cover provided and claims service excellence.
Continue reading our full range of market updates:
- Insurance Market Overview: July 2026
- Claims
- Workplace Risk
- Corporate and Multinational Risk
- Construction, Property and Development
- Financial Lines
