Australian Insurance Rates Softest in Over a Decade

Global Insurance Desk: Australian commercial insurance buyers are enjoying the most competitive conditions in more than a decade, according to Marsh’s Australian Insurance Market Update 2026. Property rates fell between 10 and 20 percent in the first half of the year, liability dropped 5 to 15 percent, directors and officers cover eased 10 to 20 percent and cyber insurance softened by 5 to 10 percent.

Maurice Gatto, Marsh’s head of global placement for the Pacific, described the environment as one not seen for over ten years. Clients are securing year on year reductions along with broader coverage, higher limits and lower retentions across most classes. Positive results for insurers and reinsurers, plentiful capital and intense competition for growth are driving the buyer friendly market.

Capacity has outstripped demand in property, forcing insurers to compete hard for places on programs. International players continue to add pressure, and most local portfolios have stayed profitable even after two years of declining rates. One international insurer left the market late in 2025, yet overall capacity kept expanding. A major Japanese carrier opened an Australian office in April, further boosting options.

Medical malpractice rates ranged from a 10 percent fall to a 10 percent rise, while accident and health increased 5 to 15 percent and workers compensation moved between a 2 percent drop and a 6 percent rise. Risks with poor claims histories still face upward pressure despite the wider softening.

The findings come from Marsh’s latest market report covering the first six months of 2026.