Broker Benchmarking Shows Premium Tailwinds Are Easing

The headline message is not that insurance has suddenly become cheap. For households and small businesses, affordability remains a live issue, particularly where claims inflation, natural perils exposure, labour costs and rebuilding costs continue to affect pricing. What appears to be changing is the balance of power in parts of the market. Macquarie’s report says 54% of surveyed firms grew gross revenue in the year to June 2026, down sharply from 90% in 2023. It also points to lower average revenue and gross written premium, suggesting the hard market that lifted premiums across many commercial classes is moderating.

For clients using insurance brokers, that matters because renewal discussions may become less one-dimensional. During a hardening market, much of the conversation can be consumed by price increases, restricted capacity and tighter underwriting. In a softer or more competitive phase, there may be more scope to test whether existing cover, excesses, limits, exclusions and insurer appetite still fit the risk. That does not mean every policyholder will obtain a reduction, and it does not remove the need to disclose risk information accurately.

The report also highlights why service quality will be important. If premium-led growth is easing, intermediaries may need to demonstrate value through clearer advice processes, better documentation, proactive reviews and stronger client retention. Macquarie identified issues such as artificial intelligence, cyber risk, compliance costs, talent shortages and premium affordability as pressures shaping intermediary businesses. Those pressures can affect how quickly clients receive support and how well complex risks are explained.

Small business owners should treat the softer market signals carefully. Lower rates in some commercial lines can create an opportunity to revisit cover, but they should not be confused with a reason to reduce limits without checking the consequences. Asset values, stock levels, revenue assumptions and business interruption periods can change faster than a policy schedule. Tools such as a Business Insurance Calculator may help organise estimates, although they are not a substitute for policy wording review or licensed advice where needed.

The broader takeaway is that insurance cycles move. A more competitive phase may be welcome, but the better renewal question is not simply whether the premium is lower. It is whether the cover is still aligned with the risk, whether the broker or provider has clearly explained the trade-offs, and whether the client has enough information to make a considered decision.