What we have seen in June renewals
June renewals remain very competitive for strong private companies, but insurers are more careful around financial stress, employment practices and statutory liability. Although pricing reductions are now more moderate than the significant declines seen in 2024-25, rate relief of 5-10% remains common. Insurers are continuing to offer coverage enhancements, reduced retentions and more bespoke policy structures for organisations able to demonstrate strong governance, employment practices frameworks and financial stability. This competitive environment is expected to remain in the near term, though certain sectors continue to attract more cautious underwriting.
The Management Liability market continues to present favourable conditions for businesses, but the underlying risk environment is moving in the opposite direction. Organisations that stay ahead of their governance, employment and compliance obligations will be better placed when market conditions inevitably tighten.
Premium pricing trends
Rate relief of 5-10% remains common for strong risks, with flat to +10% for insolvency-exposed, employment-heavy or claims-affected sectors.
Insurer behaviour
Insurers are chasing SME and mid-market management liability, although the better markets remain cautious around insolvency, wage disputes, Workplace Health and Safety (WHS) and regulatory claims. Even within a soft market, insurers are maintaining firm underwriting discipline, as geopolitical tensions, fuel security concerns, inflation and cyber-related risks continue to shape market conditions and may influence insurer appetites if any of these pressures intensify.
Claims trends
Claims trends include Employment Practices Liability (EPL), wage underpayment, statutory liability, WHS, insolvency, crime, cyber-related management failures and restructuring disputes. Management Liability claims have been rising across several industries in Australia, driven by sector-specific pressures.
In construction, increased WHS investigations, insolvent trading allegations, psychological injury claims and regulatory scrutiny from WorkSafe, ASIC, EPA and state building regulators are raising the likelihood of directors and officers facing costly defence actions and potential penalties for alleged governance failures, safety breaches or financial mismanagement.
In retail, a higher number of EPL claims, wage-underpayment enquiries and cyber-related exposures are emerging. Even where allegations are ultimately groundless, defence costs can be significant.
In professional services, increased labour-hire injury claims, privacy and cyber governance investigations and workplace culture-related EPL matters are prominent. In manufacturing, WHS and labour-hire injury claims along with environmental and contamination-related exposures are key concerns.
Across all sectors, heightened regulatory activity, psychological risk obligations and governance expectations are contributing to more frequent notifications and higher defence costs due to claims cost inflation.
EPL continues to be one of the most frequent triggers for Management Liability claims, driven by evolving workplace culture, increased employee awareness of complaint pathways and more external scrutiny of internal processes. Key drivers include wrongful termination, discrimination and harassment, and retaliation and whistleblower actions.
Legal and regulatory developments
ASIC enforcement priorities, private credit scrutiny and financial reporting misconduct are relevant. Budget-driven business stress may increase restructuring and insolvency claims. Businesses also face increased fines, regulatory actions and compliance costs following the recent tightening of privacy laws. Stronger enforcement powers mean regulators can initiate audits or investigations with little notice, while expanded individual rights increase the likelihood of claims following a breach. The privacy reforms have materially increased the number of regulatory investigations, penalties and allegations of management failures, all of which heighten Management Liability exposures for both the business and its directors.
Governance risk is increasingly prominent, with directors in professional services, financial services, construction and property facing tighter scrutiny of their decision-making, record-keeping and compliance processes. Depending on the industry, this can include obligations around workplace safety, cyber security, employee policies, product risk management, environmental and ESG compliance and consumer protection. The introduction of Australia’s climate-related financial disclosure and sustainability reporting framework further reinforces the need for businesses to keep systems robust and aligned with evolving regulatory standards.
A major shift coming in July 2026 is the expansion of Anti-Money Laundering and Counter-Terrorism Financing obligations to lawyers, accountants, real estate agents and trust and company service providers. These businesses will be required to verify clients, monitor and report suspicious activity, report large cash transactions and ensure staff are adequately trained. Further detail is available at the AUSTRAC AML/CTF reforms page.
AI and technology impact
AI in HR, recruitment, rostering, payroll and performance management can create discrimination, privacy and employment claims.
What policyholders should do now
Review EPL, statutory liability, crime, investigation costs, cyber exclusions, insolvency wording and defence costs. Private businesses should treat management liability as core balance-sheet protection. Maintaining strong controls, transparent HR procedures, regular training and consistent communication are essential to reducing exposure to EPL-related claims.
To manage growing governance risk, organisations should strengthen internal frameworks, conduct regular compliance reviews, maintain clear documentation and ensure directors and staff receive ongoing training to keep pace with evolving obligations. Together, these developments mean governance expectations for SMEs are rising quickly, and directors are being held to higher standards across a broader range of operational and compliance areas. Strengthening safety systems, maintaining leadership and financial oversight, maintaining clear records and delivering consistent WHS and compliance training are all critical to staying ahead of these pressures across every sector.
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
