Following another strong year for insurers, Taylor Fry’s RADAR FY2026 examines results across business classes and explores how competition, inflation and AI governance could shape the sector’s next 12 months.

For households and businesses watching every dollar, strong insurance industry profits do not necessarily mean relief from rising premiums. Taylor Fry’s RADAR FY2026 examines the competing forces shaping insurance costs and what they could mean for customers.

The general insurance industry recorded an after-tax profit of $5.3 billion, down around $2 billion from the previous year. Yet results varied considerably: householders insurance recorded an underwriting loss following severe storms and hail, while domestic motor remained highly profitable.

For home owners, construction inflation remains a major affordability challenge. The cost of building a new house has risen by more than 40 per cent over five years, increasing the cost of repairs and rebuilding. These pressures flow through to claims costs and premiums, adding to the financial strain on households.

Businesses may find some breathing room. Increased capacity and competition have pushed commercial insurance rates lower, with Marsh reporting declines across commercial property, public liability, and financial and professional lines. For brokers, this creates an opportunity to revisit clients’ cover and assess whether market conditions offer better value.

However, lower rates may not last indefinitely. A major natural disaster or economic shock could change the outlook, while rising legal costs and damages continue to put pressure on liability claims.

Understanding these differences can help insurance professionals explain pricing pressures, support informed purchasing decisions and discuss affordability with customers. The report provides context for those conversations, looking beyond headline profits to the pressures affecting individual classes.

Read the RADAR FY2026 to understand what lies ahead.

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