Premium Affordability and Cybersecurity Emerge as Leading Concerns for Australian Insurers in 2026

Premium affordability has surged to the forefront of industry concerns, moving from the sixth position in 2025 to the top spot in 2026. This shift is attributed to factors such as rising inflation, heightened climate-related losses, and regulatory pressures. The Insurance Council of Australia reported insured catastrophe losses of approximately $2.61 billion in 2023-24 and $1.97 billion in 2024-25, with events like Ex-Tropical Cyclone Alfred generating over $1.5 billion in claims. Such substantial losses have placed sustained pressure on premiums, increasing the risk of customers dropping cover.

Cybersecurity remains a critical issue, maintaining its position as the second most significant challenge for the second consecutive year. Data from the Office of the Australian Information Commissioner indicates that in the first half of 2025, malicious or criminal attacks accounted for 59% of reported data breaches, affecting an average of over 10,000 individuals per incident. As insurers increasingly rely on digital and cloud-based systems, the scale of potential exposure continues to grow.

Workforce challenges have also intensified, with the difficulty of attracting and retaining skilled employees now ranking third among industry concerns, up from seventh in the previous year. Respondents point to changing workforce expectations and skills shortages as key issues, particularly as insurers become more digital and customer-focused.

For real estate professionals, these industry challenges have direct implications. Rising insurance premiums can affect the affordability and availability of coverage for properties, influencing investment decisions and client advice. Additionally, the heightened focus on cybersecurity underscores the importance of robust data protection measures, especially when handling sensitive client information.

To navigate these challenges, real estate agents and property managers should consider the following strategies:

• Stay Informed: Keep abreast of industry trends and regulatory changes that may impact insurance costs and availability.
• Risk Management: Implement comprehensive risk management practices to mitigate potential liabilities and reduce insurance costs.
• Cybersecurity Measures: Invest in robust cybersecurity protocols to protect client data and maintain trust.
• Client Education: Educate clients about the importance of adequate insurance coverage and the factors influencing premium costs.

By proactively addressing these challenges, real estate professionals can better serve their clients and adapt to the evolving insurance landscape.