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Report

Australian Construction Insurance Market Update 2025

Australian construction insurance market trends, costs, and local insights for 2025

The Australian construction industry has experienced continued insurance market improvements, driven by increased insurer capacity and competition in the first half of 2025.

Our 2025 report provides a comprehensive analysis of the first half of the year, offering local market insights, coverage trends, and strategic advice to help you optimise renewal outcomes and stay ahead of industry developments.

Following an extended period of challenging market conditions, 2025 has seen a softening trend across various industry segments within the Australian construction insurance market. Clients with strong risk management practices can leverage these favourable conditions for improved coverage and pricing. However, deteriorating claims experience and natural catastrophe exposures continue to attract insurer scrutiny.

This industry-specific update offers a detailed view of the construction insurance market encompassing contract works, construction liability and design and construction professional indemnity insurances. Our report will deep dive into:

Construction insurance market trends and outlook

Coverage and pricing developments

Insurer appetite and market influences

Tips on maximising renewal outcomes

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Download the Australian Construction Insurance Market Update to access the latest insights, trends, and expert advice tailored to the Australian construction sector.

FAQs

Our Construction Insurance Market Update 2025 is an industry-specific report providing insights into insurance market trends, coverage developments and risk management strategies within the Australian construction sector. It’s an addendum to the Australian Mid-Year Insurance Market Update, helping construction firms understand current conditions and emerging risks.

Premiums can be influenced by factors such as increased claims related to project delays, subcontractor defaults and environmental liabilities, as well as insurer risk appetite shifts in high-value or complex construction projects.

Demonstrating strong risk management in on site safety, onsite risk mitigation, project timelines and contractual risk allocation will be key in differentiating your risk profile to insurers. By implementing robust safety protocols, improving project management practices, and proactively managing subcontractor relationships, construction firms can reduce claims frequency and severity, strengthening your risk profiles and negotiating better coverage terms.

Contract works insurance, construction liability insurance, and design and construction professional indemnity are key insurance classes relevant for the construction industry. Construction firms should focus on enhancing coverage for project delays, environmental liabilities, cyber risks and subcontractor default, as these areas are increasingly impacting project outcomes and insurance premiums in 2025.

By staying informed about insurer appetite shifts and emerging market trends, construction companies can tailor their project planning, select suitable risk transfer solutions and position their bids more competitively, ultimately improving project feasibility and insurance outcomes.

This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and any analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change.

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