Australia’s insurance market is navigating a period of heightened volatility driven by climate-related losses, rising costs, regulatory scrutiny and shifting capacity in some product lines, and the transport industry has not escaped the impact. Clients face higher premiums, more complex policy wordings and greater emphasis from insurers on risk mitigation — all of which make specialist broker advice more valuable than ever.
The scale of climate-driven loss is stark. Insurers recorded $2.19 billion in claims from declared extreme weather events in 2023–24, with almost 157,000 claims — some 66,000 more than the prior period, showing events are more frequent and geographically widespread. These large but dispersed losses are driving underwriting caution and pricing pressure across home, commercial and specialty lines.
That pressure shows up in premiums. Multiple market observers reported materially higher prices in 2024–25: average household motor and home rates are rising in the mid-to-high single digits to double digits in many areas, and some customers have seen increases above 30% depending on location, claims history and insurer appetite. Government interventions such as the cyclone reinsurance pool have moderated some rises, but the overall trend is upward.
At NatRoad Connect 2025, AEI Insurance Brokers Partner Jordan Caleo spoke to the audience on the following issues we see members struggling with or missing:
- Ensure that you engage with a trusted legal provider to have your terms and conditions reviewed and provide them to your insurance broker.
- Take a couple of hours to sit down with your broker this year to understand any areas of uninsured risk that you should be considering in 2025. AEI undertake to meaningfully review this with our clients regularly – a lot has changed!
- Speak to your broker about alternative structures for your motor insurance that might save you some extra premium. HINT: you shouldn’t have to be asking – that’s their job!
That’s where a specialist insurance broker adds measurable value. A specialist broker:
- translates market movement into actionable placement strategy (which carriers to approach and how to present risk)
- negotiates policy wordings and covers gaps that generic products leave open
- helps quantify and document mitigation measures to reduce premium and improve insurability, and
- provides advocacy and technical claims support when losses occur.
No matter how many trucks you own, in a market shaped by climate volatility, tightened capacity and closer regulatory scrutiny, expert navigation matters. Working with a specialist broker doesn’t just aim to reduce premium — it aims to secure the right protection, clarify exclusions and ensure a strong advocate at claim time. For businesses and households that can’t afford surprises, that advocacy is now an essential part of risk management.
For further information or advice reach out to the team at AEI any time for a discussion on 02 8913 1600, or [email protected].
