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Australian Mid-Year Insurance Market Update 2021

General outlook for insurance buyers in the Australian insurance market is more positive heading into the second half of 2021. Read the latest market insights and trends by class of insurance.

Following an unprecedented 17 consecutive quarters of premium rate increases, the general outlook for insurance buyers in the Australian insurance market is more positive as we move into the second half of 2021.

Our latest Mid-Year Insurance Market Update 2021 takes a look at the state of market throughout the first half of the year, including a detailed breakdown of premium analysis by insurance class, coverage trends, insurer appetite, market influences and outlook across:

  • Property insurance
  • Liability insurance
  • Directors and officers liability (D&O) insurance
  • Professional indemnity insurance
  • Crime insurance
  • Medical malpractice insurance
  • Cyber insurance
  • Construction insurance
  • Environmental liability insurance
  • Employee benefits (Accident & health, life, private health)
  • Workers compensation

At a glance

Property insurance and D&O insurance premiums continued to rise, but the rates of increase have started to moderate. There are some signs of competition returning for loss-free quality property accounts, as insurer results begin to improve.

Marsh’s ongoing advocacy for changes to continuous disclosure laws that had played a role in driving class actions and D&O insurance prices in recent years finally saw a permanent change to continuous disclosure obligations passed through parliament in early August, 2021. This significant and positive development is expected to have a profound impact in the D&O space in reducing claims activity, reducing pricing and ultimately improving the availability of coverage.

The liability/casualty market continues to face challenging conditions, experiencing the largest premium increases since 2012 with capacity tightening for certain high hazard industries/exposures.

The cyber insurance market is in a state of flux. A number of high profile claims has seen insurers refining their underwriting strategy and increasing premiums significantly.

For more trends and insights on the state of market in Australia, download our full report.

LCPA 21/259

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