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Rising Insurance Risk Pressures Challenge Australian Businesses

Gallagher Report Highlights Emerging Challenges in Risk Management

Rising Insurance Risk Pressures Challenge Australian Businesses?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Australian businesses are confronting heightened insurance risk pressures stemming from increased litigation, technological advancements, supply chain disruptions, catastrophic events, and geopolitical tensions.
A recent report from Gallagher underscores the importance of risk insights and awareness for organizations preparing for insurance renewals.

One significant issue is social inflation, characterized by rising insurance claim costs linked to increased litigation, higher jury awards, and broader definitions of liability. The proliferation of class action settlements and litigation funding has contributed to escalating liability coverage premiums.

Artificial intelligence presents a dual challenge, offering efficiency and predictive analysis while introducing legal and cyber risks. Companies may face claims related to copyright infringement, discrimination, and privacy breaches. Additionally, cybercriminals are leveraging AI for sophisticated attacks, complicating the risk landscape.

Supply chain disruptions remain a concern, with businesses anticipating ongoing strain from product recalls, cyber attacks, extreme weather, and transportation route shutdowns. Inflationary pressures have further increased manufacturing and transportation costs, leading to higher business interruption risks and potential liability claims.

To navigate these challenges, businesses are advised to adopt comprehensive risk management strategies, including robust cybersecurity measures, regular supply chain assessments, and staying informed about evolving legal and technological landscapes.

Published:Saturday, 3rd Jan 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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