Sneak Peek: Top Three Business Challenges Facing Australian Insurers in 2026

Gallagher Bassett's The Carrier Perspective: 2026 Claims Insights report looks at Australian industry viewpoints on the most pressing concerns facing insurers in 2026. The fourth annual edition of the report is due to be released in February 2026; however, Gallagher Bassett is providing an exclusive early look at the top-ranked business challenges for the next year, according to Australian insurance industry professionals.

Top Challenges and Priorities for Australian Insurers in a Shifting Market

In 2025, Australian insurers faced a range of market pressures that shaped their strategies for managing customer expectations, navigating rising concerns over cyberattacks, and growing in a competitive market.

While many challenges from 2025 persist, carriers have observed new concerns and emerging challenges. Gallagher Bassett's survey findings reveal that the top three risks for Australian insurers in 2026 are:

• Premium affordability and insurability, as inflation, climate risks and coverage gaps rise
• Data and cybersecurity threats, amid rising organised and sophisticated cybercrime
• Attraction and retention of top talent, in the face of shifting workforce expectations

1. Premium Affordability and Insurability Become the Primary Concern

While respondents to the 2025 survey considered 'Changing Customer Expectations' as the top-ranked business challenge, results show that Australian insurers have shifted focus over the past 12 months. 'Premium affordability and insurability' has risen from the sixth most commonly reported business challenge in 2025 to the first in 2026.

Insurers cite multiple coinciding factors — including inflation, growing climate catastrophes, and regulatory pressures — that are forcing them to reconsider their premium rates.

As coverage becomes more expensive, insurers risk losing customers and face more intense regulatory scrutiny. To combat this, insurers may look toward innovation in product design and risk modelling. However, in an increasingly competitive market, these efforts will require a fresh strategic approach, backed by data-driven insights.

2. Data and Cybersecurity Challenges Persist

Protecting businesses from rising cyberattacks remains a major priority for carriers. In 2026, data and cyber threats rank as the second top challenge, maintaining the same position as the 2025 report.

As insurers transition to digital platforms and adopt cloud-based ecosystems, their exposure to cyber threats increases. Businesses that prioritise strong cybersecurity are better positioned to earn and keep customers' trust, and protect their competitive position in the years ahead.

3. Difficulty Attracting and Retaining Top Talent

Attracting and retaining talent is the third top challenge of 2026 for insurers in Australia. This ranking marks a significant rise from last year's report, where issues concerning the skills gap and employee retention ranked seventh among the most reported business challenges.

Attracting and retaining talent in a difficult job market requires definitive strategies. Gallagher Bassett's The Carrier Perspective report will discuss some of the most common tactics used to combat the talent shortage by Australian employers in the insurance industry.

As the industry becomes more digitalised and customer-centric, providing robust training and mentoring programs and empowering employees with modern tools will be key in keeping insurers ahead of the curve.

Understanding the Australian Carrier Perspective

The rapid pace with which the insurance market is evolving isn't a passing phase.

Drawing responses from global insurance industry leaders and the insights of Gallagher Bassett's own in-house experts, the report provides industry professionals with an in-depth examination of the evolving claims landscape. Readers can expect insight into the strategies insurers are using to navigate present and future market challenges.

Join the subscriber list to receive the full version of Gallagher Bassett's The Carrier Perspective: 2026 Claims Insights report when it launches in February.