Smart technologies have changed the way insurers view commercial property risk in Australia, according to Howden.

Devices such as digital access controls, which are now common, were not designed with cybersecurity in mind, the intermediary group says.

“These interconnected systems can increase exposure to cyber threats … This evolving landscape is prompting insurers to reassess how they evaluate risk.

“Properties that can demonstrate both energy efficiency and cyber resilience are more likely to secure favourable insurance terms.

“Conversely, buildings lacking robust network security, patching protocols or incident response frameworks may encounter reduced coverage or higher premiums.”

Insurers increasingly want evidence of integrated risk management frameworks, Howden says.

“This includes documented sustainability reporting, climate scenario modelling, cyber risk assessments, and active governance structures. Demonstrating a proactive approach to risk, rather than reactive compliance, can significantly improve insurability and reduce premium volatility.”

Howden says the commercial property sector is at a pivotal moment.

“Risk frameworks are evolving to address broader systemic pressures – environmental, technological and reputational.

“Organisations that prioritise resilience by integrating sustainability into design, strategy and governance are likely to attract capital, reduce claims volatility and maintain asset value.”