Following on from our previous market update, the soft market cycle remains in effect, offering a continued reprieve for policyholders with premium rates for liability insurance generally decreasing by 5 to 10 per cent.
The influx of new market entrants and heightened competition has boosted both capacity and availability offering policyholders greater flexibility, improved terms, and more control over their risk transfer options.
In terms of pricing, the Australian market continues to offer more competitive rates than Lloyd’s of London. This is of course dependant on factors such as business type, industry, geographic footprint, turnover, claims history, and contractor exposure, all of which impact the availability of reduced insurer rates.
During the soft market there are opportunities for lower excesses, long-term agreements and a wider scope of cover from insurers. It is important, however, to consider the stage of the market cycle. To this end, our article on insurer loyalty and long-term pricing stability provides guidance on benefitting from cost and coverage improvements.
Restrictions on cover and exclusions continue to be applied for molestation/sexual abuse and PFAS. Businesses should actively continue to mitigate workplace injuries including OH&S/WHS breaches and, address PFAS exposures by implementing policies and procedures to minimise exposures and ensure compliance with relevant work health safety legislation.
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
