Premiums are rising at a slower pace across most commercial lines, easing the pressure on insureds, broker EBM says in its latest insurance market summary. 
 
The May market update says “green shoots within several commercial insurance lines have arisen in the last six months”, describing the changes as “welcome news for clients”. 
 
“In general, the hard market conditions prevail across most commercial lines, however, there are also signs of some stability,” the market summary says. 
 
“Insurance premiums have continued to level out, although they are not yet falling.” 
 
EBM says the changes in pricing and availability of insurance cover been influenced by improved risk awareness, management and mitigation by clients, and a return to profitability for insurers. 
 
With increased capacity in the Australian market, risks that were previously shifted offshore can now be placed with Australian insurers. 
 
“This, in turn, has made international capacity more competitive,” the market summary says. “New local and international capacity entering the market is giving many clients more options and greater control over how they structure risk.” 
 
However, conditions remain “particularly challenging” for some higher-risk lines and this is the case for natural catastrophe-impacted property, professional indemnity and cyber, the update says. 
 
EBM says external factors are also impacting pricing conditions. They include economic instability, inflation, supply chain difficulties and increasing frequency and severity of extreme weather events. 
 
Looking ahead EBM expects the hard market conditions to continue but says there is “strong evidence that the steep pressures over past three years are levelling out”. 
 
“However, the risk and insurance market remain volatile. Outcomes for clients will continue to be influenced by global as well as local conditions.” 
 
The EBM update says in property prices continued to moderate over the second half of the 2022 calendar year and into 2023. Premium increases of 10-15% were standard and, for loss-affected clients, premium uplift was in excess of 20%. 
 
“Though premiums continued to increase, the magnitude of increases has reduced,” the broker says. 
 
For clients with property in nat-cat zones, obtaining insurance has been more difficult after last year’s floods. 
 
“The floods that occurred in early 2022 heightened insurer concern around the potential for losses related to floods and natural catastrophes in general,” EBM says. 
 
“Flood-affected and flood-prone areas are expected to experience further capacity restrictions.” 
 
Within professional and financial lines rate rises are stabilising, but risks remain high for professional and financial lines. 
 
Overall, rates stabilised following a return to profitability for insurers (2017, 2018 and 2019 were the worst underwriting years on record, forcing a hardening across the market), new competition and clients buying less cover. 
 
Directors’ and officers’ (D&O) pricing continued to moderate, as did other financial and professional lines. The development of competition, particularly for excess layers, resulted in improved pricing. 
 
The cyber market remained challenging but began to stabilise in the second half of last year. 
 
The professional indemnity (PI) market generally remained challenging, particularly for some industries such as construction, certain areas of finance such as large accountants, financial 
planners, valuers and mortgage brokers, and lawyers.  
 
These professions continued to experience increased rates and capacity restrictions, although conditions moderated from previous periods. 

EBM has offices in Sydney, Melbourne, Queensland and WA.