2025 insurance outlook: stabilisation, risk focus, and strategic opportunities for LFR
LFRA Associate Member Edgewise Insurance recently released its Q2 2025 Market Update, outlining key developments in insurance across property, general liability, directors & officers (D&O) liability, cyber, and construction. These insights carry important implications for stakeholders in the Large Format Retail sector.
“For 2025, following years of significant premium increases, the Australian insurance market is showing signs of stabilisation and is entering a softening phase,” said Stella Pruscino, Director, Edgewise Insurance. “This shift is driven by factors such as stabilising inflation, improved insurer profitability, and heightened market competition, leading to more favourable conditions for policyholders.”
However, according to Ms Pruscino, insurers remain vigilant about emerging risks, including those related to artificial intelligence (AI), environmental, social, and governance (ESG) factors, worker-to-worker claims, and cyber exposures.
She adds, “Insurers are focusing on risk management, reinsurance strategies, and digital transformation. AI is reshaping the insurance sector by enhancing speed and efficiency but also introducing new risks that underwriters are closely monitoring. Climate change, cyber threats, and evolving ESG regulations continue to challenge traditional underwriting models.”
Importantly, insolvency risks are rising, especially in construction, food, retail services, and manufacturing, making it critical for businesses to maintain strong insurance planning and disclosure practices.
With the insurance landscape continuing to evolve, more businesses are reassessing their current cover and preparing early for upcoming renewals.
“We’re working closely with our clients to develop tailored risk mitigation strategies and access new local and international insurance capacity,” said Ms Pruscino. “It’s important businesses partner with a broker who understands the unique risks and requirements of Large Format Retail.”
