What we have seen in June renewals
June renewals showed improvement for well-managed, well-valued schemes with clean claims and strong maintenance data. Defective, CAT-exposed or underinsured buildings remain difficult. Well-managed strata schemes that can present robust risk management data, current maintenance records and clean claims histories are being rewarded with more favourable pricing. Buildings located outside cyclone and flood zones are particularly well-positioned to achieve meaningful rate reductions relative to their risk exposure.
We have seen insurers deploying increased capacity to support larger strata schemes in achieving a 100% placement with a single underwriter. This shift provides meaningful certainty for owner’s corporations, particularly in the event of a claim, as it removes the complexity of co-insurance arrangements and delivers a single point of accountability for the claims process, resulting in faster outcomes.
Owners’ corporations and strata committee members have become more attuned to the evolving regulatory landscape. Recent regulator-led reforms focused on strata insurance affordability and transparency in commission disclosures have elevated policyholder awareness of governance obligations and broker accountability.
Premium pricing trends
Pricing is flat to -5% for clean risks and +10% to +25% for CAT, cladding, defects, poor maintenance or underinsurance. That said, rate reductions continue to be largely offset by rising insurable building values, which results in the overall total cost of risk being relatively benign.
Insurer behaviour
Insurers are selective. They will compete for clean schemes but require evidence on valuations, maintenance, defects and CAT exposure. Insurers are applying significantly greater scrutiny to mixed-use strata schemes. Those with commercial operations which were previously considered non-preferred, such as tobacconists and adult services, remain difficult to insure and are experiencing significant premium uplift. However, food and beverage operators, including restaurants, particularly those in identified high-risk locations such as inner Melbourne, are becoming increasingly subject to coverage restrictions or premium loading.
Claims trends
Claims trends include water damage, storm/flood, defects, underinsurance, cladding, building envelope failures and maintenance disputes.
Legal and regulatory developments
Cladding and building defect decisions remain directly relevant. Budget property reforms may influence valuations, investor behaviour and owner’s corporation funding pressure. Recent regulator-led reforms focused on strata insurance affordability and transparency in commission disclosures have elevated policyholder awareness of governance obligations and broker accountability.
AI and technology impact
Leak detection, maintenance platforms, building management systems and digital records can materially improve underwriting outcomes.
What policyholders should do now
Update valuations, resolve defects, document maintenance, disclose cladding issues, review by-laws around risk controls and use competition to improve claims service and limit adequacy. Investing time in a proactive risk presentation remains the most effective lever available to owner’s corporations ahead of renewal. We recommend providing insurers with clean and comprehensive building data, including construction type, occupancy profile, security systems and fire protection details. Accurate insurable valuations are imperative, and details on maintenance logs and advanced capital expenditure plans will assist in improving pricing and the breadth of cover secured.
We are also seeing growing interest in alternative risk transfer mechanisms from owners’ corporations of larger schemes, including parametric insurance and discretionary mutuals, as they explore longer-term strategies to manage the total cost of risk beyond traditional property insurance placements.
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
