Q4 FY23 saw a significant increase in the volume of renewals for our Financial Lines products, with a large proportion of the industry Professional Indemnity renewals taking place in the month of June. This year saw continued support from our real estate Professional Indemnity partners, with premiums remaining steady for most of our clients.

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Professional Indemnity for commercial property managers, particularly those with turnover exceeding $15M, remains challenging. This is largely due to the increased frequency and severity of Bodily Injury claims. Many insurers have limited appetite for comprehensive policies for this sector – particularly if shopping centre management activities are also undertaken. It is common to see restrictions in coverage or higher excesses at this level. Whilst there are underwriting agencies and insurers who will offer terms for these clients, a comprehensive review of the wording is required, as coverage may provide restricted protection against specific risks associated with these activities – particularly in relation to Bodily Injury coverage.

The Commercial Property insurance market is tracking similarly to Commercial Strata, with tenancy hazard rating and claims history having a significant impact on premiums. High-hazard tenancies – such as manufacturing, recycling, and high-hazard storage are at the mercy of insurers’ limited appetites with only a small amount of capacity available in the local market.

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Cyber Insurance within the Real Estate sector continues to be a hot topic, with premiums remaining relatively steady, dependent on the risk mitigation measures in place. Social engineering fraud and business email compromise scams continue to be the most common cyber threats for small-to-medium enterprises (SMEs) which are often followed by Funds Transfer Fraud (FTF) attacks, with significant losses occurring in these areas. Insurers’ minimum requirements for cyber security have increased significantly over the last 12 months, in an effort to mitigate the impact of these attacks. According to Chubb, the Professional Services Industry was the source of over 32% of all global Cyber Claims in FY23, so while a small number of real estate agencies continue to self-insure, there is no room for complacency.

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