Property Risks in Australia: What Brokers Need to Watch

Australia’s property insurance market is under pressure. Rising construction costs, inflationary claim trends, and escalating climate-related events are reshaping how risks are assessed and priced. For brokers, understanding these dynamics is key to helping clients secure adequate cover and manage exposures.

The Underinsurance Problem

Recent surveys estimate that over 70% of commercial properties in Australia are underinsured. With construction costs rising by more than 30% over the past three years, Declared Values that were accurate pre-COVID are now significantly outdated. Brokers should be prompting clients to regularly review asset values, factoring in not just rebuild costs but also inflation, supply chain delays, and demolition expenses.

Climate and Catastrophe Exposures

Bushfires, floods, and severe storms are striking with greater frequency and severity. The 2022–23 floods have been estimated to exceed $6 billion in Insured losses. For brokers, this highlights the need to ensure that catastrophe sub-limits are realistic and that clients understand policy exclusions, waiting periods, and resilience measures that can support insurability.

Insurance Market Dynamics

Capacity in the property space remains constrained, particularly for catastrophe-prone regions and higher-risk industries. Insurers are scrutinising valuations, construction details, and occupancy more closely than ever. Brokers who prepare thorough, accurate submissions supported by detailed risk information are best placed to achieve positive outcomes for their clients.

Halo’s Role

At Halo Underwriting, we specialise in providing Property and Liability solutions that address the realities of the Australian market. Backed by strong capacity and underwriters who understand local challenges, we work with brokers to deliver tailored cover for both SMEs and larger corporates. Our focus on appetite clarity, proactive risk assessment, and responsive service ensures brokers can provide their clients with confidence in uncertain times.

Looking Ahead

As property risks continue to evolve, brokers who engage clients on accurate valuations, climate resilience, and occupancy exposures will play a vital role in ensuring businesses are adequately protected — not just insured on paper.

Give us a call to discuss your client's property insurance needs today on: 1800 161 165