Financial Services Licensees
The second half of 2025 has seen the Australian PI market for financial services licensees continue to soften, though the pace of reductions has begun to stabilise.
Expectations of a flattening of premium rates have not materialised and instead, the entrance of new insurers to existing markets have driven competition continuing a downward trend. Reductions of 10 to 15 per cent are typical with greater savings available depending on risk profile.
Insurers remain keen to deploy capacity into fund and asset managers with exposure to commercial property and equities. Appetite for CBD office assets has improved markedly as occupancy rates have stabilised, helping insurers regain confidence in this segment.
There remains limited interest for residential property development exposures however, and proposers that can show either a good track record or sector experience are seeing more market interest.
Private credit and mortgage funds are still underwritten selectively, with insurers scrutinising credit policies and borrower disclosure frameworks. Insurers and proposers should be warned that ASICs 2026 enforcement priorities include poor private credit practices.
Regulatory oversight has intensified, particularly around private capital markets. ASIC’s surveillance of private credit funds has sharpened focus on disclosure obligations, valuations, and conflicts of interest. This has tempered insurer enthusiasm for retail facing schemes, though those demonstrating strong governance and compliance with Design and Distribution Obligations have fared better. Overall, premium reductions of 8–12 percent were achieved in 2025, but the outlook is for stabilisation in 2026 as regulatory activity begins to bite.
IT and SaaS providers
For IT and SaaS providers, the market has remained cautious throughout 2025. The introduction of the Cyber Security Act and amendments to the Privacy Act have materially altered the risk landscape, particularly for managed service providers handling sensitive data. Many insurers are reluctant to quote unless the scope of services is clearly defined, with proposers needing to demonstrate robust cyber preparedness and contract risk management.
Insurers continue to restrict appetite for businesses with significant US exposure, particularly where turnover exceeds 25 per cent of their total revenue. FinTech firms operating in higher risk lending sectors remain unattractive to most insurers. Claims activity has centred on data breaches and service outages, with severity heightened where regulatory penalties are involved.
Looking forward, insurers are expected to remain selective, rewarding those firms that can evidence strong privacy by design frameworks and incident response capabilities. Premiums for lower risk SaaS providers have seen modest reductions of up to 10 per cent, but those with high data sensitivity or US exposure have faced flat or slightly increased rates.
Real estate and property professionals
The real estate sector has enjoyed broad insurer appetite in 2025, though caution persists around strata managers, residential property managers, and off the plan apartment sales.
Insurers have imposed exclusions relating to bodily injury claims arising from residential property management, which continues to be a significant concern for managers.
Property managers who have invested in technology to monitor inspections, repairs, and incidents have been rewarded with better rates and broader market access. This proactive approach to risk management has helped mitigate claims through more accurate record keeping and reassures insurers of the robustness of their oversight.
Premiums for well managed property management firms have obtained reductions while strata and off plan exposures have remained flat.
Property valuers, however, continue to face limited market appetite, with insurers closely examining geography, asset type, and loss history. The softening interest rate environment has provided some relief, but appetite remains limited for higher risk asset classes. Valuers in stable asset classes have seen modest reductions, but overall, the sector remains under close scrutiny and is plagued by in most instances insurers offering very restrictive coverage.
Accountants and auditors
For accountants, 2025 has been a year of relative stability. Firms with strong claims histories and robust internal risk management have achieved discounts of 7 to 12 per cent, while those engaged heavily in audit or R&D tax advisory continue to face limited insurer appetite. The introduction of Australia’s sustainability reporting regime has placed new demands on accounting firms, requiring them to upskill and adapt to evolving expectations.
A review of auditors by ASIC uncovered significant shortcomings across firms of all sizes in terms of auditor compliance with their independence and conflict of interest obligations.
Insurers have been wary of exposures linked to listed companies, where the potential for complex disputes is higher. Claims trends have reflected advisory errors tied to sustainability reporting and financial disclosure, reinforcing the need for firms to demonstrate competency and strong quality assurance processes.
Looking ahead, firms that invest in training and align their practices with new reporting requirements will be best placed to secure favourable terms. Audit-heavy practices, however, are likely to continue to face flat or modest reductions.
Solicitors
The legal profession has benefited from abundant insurer appetite in 2025, particularly for top-up placements attaching around $30M. Both local insurers and Lloyd’s syndicates have been active, enabling firms to secure higher limits at lower rates. Premiums on primary layers have remained largely stable, but competition in the excess market has allowed firms to take advantage of favourable conditions.
Claims activity remains concentrated in longtail disputes, with insurers cautious about complex litigation exposures. Nonetheless, firms with clean claims histories have been able to negotiate improved terms and broaden coverage. The regulatory environment, particularly enhanced accountability regimes, has reinforced the importance of rigorous file management and conflict governance, which insurers are increasingly factoring into their underwriting assessments.
Overall, premiums for solicitors have been stable with some slight reduction, of up to 10 per cent achievable on excess layers with greater reductions on layers attaching above $100M. The outlook for 2026 is continued stability, with competition likely to persist in the top-up market.
Continue reading our full range of market updates:
- Insurance Market Overview: January 2026
- Claims
- Workers Compensation
- Corporate and Multinational Risk
- Construction, Property and Development
- Financial Lines
