What we have seen in June renewals
Dealer programmes are attracting insurer interest where risk controls are strong, but the exposure is increasingly complex because motor trade, cyber, finance, property, employment and consumer obligations intersect.
Premium pricing trends
Pricing is flat to -5% for strong dealer groups and +5% to +15% for theft, hail, cyber, fraud, weak controls or EV battery exposure.
Insurer behaviour
Australian insurers have generally approached renewals as opportunistic competitors rather than cautious underwriters, with property, liability and professional lines pricing easing steadily through to mid-2026 on the back of improved insurer profitability, calmer reinsurance conditions and a global surplus of capacity chasing growth; for motor dealership risk specifically, this has translated into insurers competing harder on well-maintained sites with clean claims histories while still applying noticeably more discipline to EV-heavy stock profiles.
Looking to the next six months, most market commentary points to a continuation of this soft cycle into the second half of 2026, with insurers expected to maintain broad appetite and flexible terms provided there is no major catastrophe event or accumulation loss to disrupt sentiment, though the pace of softening is widely expected to moderate rather than accelerate further; the more interesting shift to watch is a gradual firming of underwriting scrutiny around EV battery and thermal risk as claims data accumulates, alongside insurers becoming increasingly assertive on cyber given the sharp rise in incident costs, and a continued cautious stance on statutory liability as dealer group consolidation activity brings more governance and compliance questions into underwriting conversations.
Insurers are competitive but prefer groups with disciplined stock control, test drive protocols, cyber controls and site-level risk management.
Claims trends
Claims trends include stock theft, hail, test-drive incidents, cyber-enabled payment diversion, internal fraud, EV/battery fire, vandalism and employment claims.
Legal and regulatory developments
Consumer law, finance disclosure, misleading representations and employment practices remain relevant. Any deterioration in consumer demand may increase complaints and disputes.
AI and technology impact
Dealer management systems, online sales platforms, customer data, payment systems and connected vehicles create material cyber and crime exposure.
What policyholders should do now
Review motor trade wording, floorplan exposure, cyber-crime, EFT fraud, EV charging/storage, hail plans, demo/loan vehicles and statutory liability. A dealer should not renew each class in isolation.
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
