Pricing cycle presents protection opportunity

An easing commercial insurance market has come as a welcome relief to businesses hit by interest rate increases and other escalating expenses, but there’s more on the table than the potential for lower premiums.

Averages can be deceptive and businesses in high-risk locations or industries may still face difficulties obtaining affordable cover. Significant differences exist across small and large enterprises, and for some it’s a case of moderating increases rather than a course reversal.

But generally, the commercial insurance market is in the “soft” phase of the cycle, driven by increasing competition and a relatively quieter period for natural disasters.

Actuarial firm Taylor Fry’s annual Radar report says commercial property average written premium is expected to decline 11% this financial year, while public liability is likely to slide 9% and professional indemnity could ease 5%.

It’s an environment where it pays to look around and compare not just the price but the value on offer and the benefits of reinvesting in businesses through enhanced cover rather than maintaining existing arrangements.

Often, business owners may have reduced cover and taken higher deductibles to curb costs when premiums were rising, but those decisions shouldn’t be a case of “set and forget”.

Softer markets mean insurers become more willing to offer broader coverage and policy terms, as well as higher limits for risks where they may previously have managed exposures.

It’s an ideal time to reassess asset valuations and sums insured, with the repercussions of underinsurance often only apparent when a claim is lodged. Impacts from expansions or operational changes and whether adjustments are needed are another part of the equation.

Cyber event response and protection could be a risk previously not considered that now makes commercial sense to add to a program, while business interruption is often overlooked.

While it’s worth scanning the market for better value, the benefits of a long-term relationship with an insurer that has a strong understanding of a sector, a customer’s business and its ambitions should be considered.

An insurer looking to retain preferred customers and keep rivals at bay may also be willing to offer attractive terms under a multiyear program in the current environment.

A market shift in the buyer’s favour offers an opportunity to become proactive. Insurance has moved through hard and soft cycles over decades, and it will turn again. If your business insurance is coming up for renewal, contact RMA Insurance Brokers to review your current arrangements and the options available.

Source: InsuranceNews Client Newsletter, Spring 2026.