Australia’s insurance market softens as competition intensifies

The property sector is seeing an influx of local and international capacity.

Australia’s insurance market is entering a softening phase as competition increases, particularly in property and financial lines, according to WTW’s latest Global Marketplace Insights - Pacific podcast.

WTW Pacific head Trent Williams said the property sector, the region’s largest premium segment, is seeing an influx of local and international capacity that has pushed rates down by as much as 20% for some industries. 

He said deductibles remain stable but cautioned clients to review the long-term stability of insurers returning to the market after years of hard conditions.

Williams noted strong profits amongst major insurers such as QBE, Suncorp, and AIG, adding that market discipline has improved. 

However, he expects further rate reductions through 2025 before stabilisation.

In casualty and liability, renewed capacity has led to more competitive terms, whilst in financial lines, WTW’s new Pacific head of

Broking, Ollie Moore, said the D&O and professional indemnity markets remain favourable for buyers, though the pace of rate cuts is slowing.

Moore urged clients to use the current conditions to negotiate broader coverage but to remain mindful of insurer reliability and claims-handling capability. 

Both executives expect competition to remain strong into 2026 as the market approaches a new balance.