Soft Conditions Persist in Australian Commercial Insurance Market Through H1 2026

Property insurance has particularly benefited from this environment. Well-maintained properties with clean claims histories have seen stable or reduced premiums, increased insurer participation, and more flexible terms. However, properties in areas prone to adverse weather or with prior claims have experienced varied outcomes, including modest premium increases in some instances.

Financial and professional lines, encompassing directors and officers, cyber, professional indemnity, and management liability insurance, have also softened. Clients with robust governance frameworks and strong financial positions have generally enjoyed premium reductions, more competitive retentions, and enhanced coverage terms.

The general liability market continues to favor buyers, especially mid-market businesses with straightforward operations and sound risk management practices. These businesses have typically experienced stable or slightly reduced premiums, increased flexibility on retentions, and strong insurer participation across both primary and excess layers.

In the cyber insurance sector, the market has remained relatively stable, offering competitive pricing and broader coverage options. This stability is partly due to improved cyber risk practices among organizations and greater insurer confidence in assessing cyber exposures. However, the actual cost of cyber incidents is rising, with medium-sized businesses reporting a 55% year-on-year increase in self-reported cyber crime costs, averaging close to $100,000 per incident.

Looking ahead, the soft market conditions are expected to persist into the second half of 2026. Clients are likely to continue benefiting from greater insurer appetite, deeper capacity, stable or declining premiums, and more flexible underwriting. However, factors such as ongoing geopolitical tensions, energy price volatility, climate-related losses, and broader economic pressures could influence insurer sentiment and potentially lead to market shifts if conditions worsen.