Broker EBM’s latest market summary flags “increasingly favourable” conditions and growing confidence in the industry’s performance.

Its September summary says factors including increased competition and strengthened insurer capacity have led to price drops in corporate and property sectors.

“After a number of years of significant premium rises and challenging conditions, the slight softening of the market brought a welcome reprieve for many clients,” EBM says.  

“With more options, clients have been able to build insurance programs to suit their risk, including in the way the program is structured and in accessing alternative risk management solutions.”

The report notes a “modest reduction” in Australian commercial pricing, at about 2%, bettering global rates, which were flat. It marks the first decrease in composite commercial rates in several years, led by financial and professional lines and double-digit drops in directors’ and officers’ cover.  

Cyber market rates also fell as advances in cybersecurity and artificial intelligence delivered risk mitigation solutions for customers.  

“Double-digit premium reductions (11%-20%) were offered to clients with advanced cybersecurity and resilience baselines,” EBM says. “It is expected that clients with superior cybersecurity will continue to benefit from the market softening into 2025.”  

The broker says property markets “generally improved”, with well-managed accounts and clients with no claimed losses recording lower premiums or below-inflation rises. SMEs reported slight increases, while natural catastrophe risks continued to be the leading factor influencing rises.  

Despite persistent rate increases, construction markets have a positive outlook: EBM sees encouraging signs as Australian insurers look to broaden their presence, bringing further competition to the sector.

In the marine market, geopolitical tensions offset improvements in other areas, and transport continues to face hard market conditions amid challenges including supply chain issues, labour shortages and high demand.

Overall, the broker says clients are enjoying “greater choice and renewed control over risk placement”. 

“Consequently, there was renewed confidence among insurance buyers in both coverage and pricing,” it says.

Looking at the year ahead, the report says: “Notwithstanding any major upset, there is cause for cautious confidence that conditions will continue to improve for many clients with further rate stability and increased coverage options.”