Australian market conditions have seen clients in many classes benefiting from competitive pricing, expanded capacity and stronger insurer appetite, Marsh says in a report. 

“We have not seen conditions like this for more than a decade, with year-on-year reductions, favourable coverage, increased limits and lower retentions across most classes,” head of global placement, Pacific Maurice Gatto says. 

“Positive insurer and reinsurer results, abundant capital and ongoing competition for growth continue to support a more buyer-friendly market.” 

The Australian Insurance Market Update 2026 shows first-half property rate declines of 10%-20%, liability down 5%-15%, directors’ and officers’ (D&O) down 10% to 20% professional indemnity flat to down 7% and cyber down 5% to 10%. 

Medical malpractice rate changes ranged from down 10% to up 10%, while accident and health was up 5% to 15% and workers compensation range from down 2% to up 6%. 

In property, capacity exceeded demand across the board, with insurers needing to compete for their participation on a policy or program. 

International capacity continued to drive competition on placements, with the majority of insurers’ Australian portfolios remaining profitable despite two years of falling rates. 

An international insurer exited the market in the final quarter of 2025, but overall the number of insurers and available capacity in the market continued to grow, with examples including a major Japanese insurer opening a local office in April. 

Insureds with adverse claims history typically still faced upward pressure on rates, despite the competitive environment. 

In liability, insurers are also competing aggressively for new business while simultaneously defending existing accounts with improved terms, and in D&O supply outpaced demand. 

In professional indemnity trends include more frequent and detailed underwriting questions on how artificial intelligence tools are used, controlled and monitored, including evidence of appropriate human oversight. 

Cyber market conditions are likely to remain competitive for the remainder of this year and into 2027, provided there’s no significant deterioration or widespread loss events, the report says. 

Private health, workers’ compensation, group life, and accident and health are generally facing upward pressure, reflecting medical inflation, claims experience, scheme reform and broader cost sustainability challenges. 

Mr Gatto says that while the overall market remains favourable, clients shouldn’t assume the conditions will last indefinitely. 

“A severe Northern Hemisphere storm season or another unexpected natural catastrophe could quickly shift sentiment,” he said.

The report is here.