If you have opened an insurance renewal notice lately, you might have needed to take a seat. Across Australia, and specifically here in Queensland, insurance costs have been climbing at a rate that has many small business owners and property investors scratching their heads.
It is the topic of conversation at local cafes in Paddington and boardrooms in the Brisbane CBD alike. Why are premiums going up so fast, and is there anything you can do about it?
At Business Insurance Consulting, we believe that understanding the "why" is the first step toward managing your costs. We are not here to just deliver bad news; we are here to help you navigate a tricky market. Here is a deep dive into what is happening with insurance premiums in 2026 and how the team at businessinsuranceconsulting.com.au can help you stay protected without breaking the bank.
The Reality of the Numbers
The statistics are hard to ignore. Over the last five years, home and property insurance premiums across Australia have risen by about 51%. In Brisbane, we are seeing some of the highest averages in the country.
While the average premium in the city sits around $3,872, some of our western suburbs, those with higher flood exposure, are seeing averages as high as $8,396 per year. For a small business operating out of a local storefront or a property expert managing an investment portfolio, these jumps represent a significant hit to the bottom line.
Business insurance is following a similar path. Recent data shows that weather-related claims for small businesses have nearly doubled in the last few years. With the average claim sitting at around $39,000, insurers are adjusting their pricing to keep up with the sheer volume and cost of these events.
Why the Price Tag is Changing
It is easy to blame "the insurance company," but the reality is a mix of local and global factors that have created a perfect storm for pricing.
1. Rebuilding is more expensive than ever
One of the biggest drivers of rising premiums in Queensland is the skyrocketing cost of construction. If your business premises were damaged tomorrow, the cost to fix them is drastically higher than it was just three or four years ago.
Between 2019 and 2024, the average cost to build a new house in Queensland jumped from $310,000 to $450,000. That is an increase of roughly 10% every single year. Building materials are about 30% more expensive than they used to be, and there is a significant shortage of skilled trades in Brisbane. When it costs more for an insurer to settle a claim, the premium naturally has to rise to cover that exposure.
2. The "Hard Market" and Reinsurance
Insurance is a global business. Local insurers take out their own insurance, known as "reinsurance," to protect themselves against massive catastrophes like the 2022 floods.
Global reinsurers have pushed their prices to 20-year highs because of extreme weather events all over the world. Australian insurers have seen their reinsurance costs go up by as much as 30% in some cases. These costs eventually trickle down to the local business owner in Brisbane. We are currently in what the industry calls a "hard market," where premiums are high and insurers are much pickier about the risks they take on.
3. More People in High-Risk Zones
Queensland is a popular place to be. The population in south-east Queensland has grown by nearly a million people over the last 15 years. This means more businesses, more homes, and more infrastructure are concentrated in areas that might be prone to storms or flooding. From an insurer’s perspective, the "concentration risk" is much higher, meaning one single storm in Brisbane can lead to a much larger total payout than it would have a decade ago.
How Business Insurance Consulting Makes a Difference
When the market is tough, you don't want to go it alone. This is exactly why Business Insurance Consulting exists. We don't just take the first price an insurer offers; we work for you to find the best possible fit for your unique situation.
Custom Solutions, Not "Off the Shelf"
Every business is different. A retail shop in a local Brisbane shopping strip has different needs than a corporate office or a landlord with a portfolio of investment properties. Our team at Business Insurance Consulting takes the time to thoroughly examine your business. We provide custom solutions that ensure you aren't paying for cover you don't need, while making sure you aren't left exposed where it matters most.
Specialist Negotiation
In a "hard market," presentation matters. When we take your business to an insurer, we present it in the best possible light. We highlight the risk management steps you’ve taken, like installing security systems, upgrading your roof, or having a solid disaster recovery plan. By showing the insurer that you are a "good risk," Business Insurance Consulting can often negotiate better terms or lower premiums than you might find on your own.
Managing Underinsurance
With rebuilding costs rising so fast, many businesses are actually underinsured without realizing it. If your policy is still based on 2020 values, you might only be covered for 60% or 70% of what it would actually cost to rebuild today. Business Insurance Consulting helps you get your valuations right, so a claim doesn't turn into a financial disaster.
Practical Ways to Manage Your Premiums
While we can't change the global reinsurance market, there are practical steps you can take to keep your costs under control.
- Review Your Excess: Choosing a higher excess can lower your annual premium. We can help you find the balance between a manageable out-of-pocket cost and a lower monthly bill.
- Invest in Mitigation: If you are a property owner, small changes like improving drainage or upgrading to fire-resistant materials can sometimes lead to better rates.
- Bundle Your Cover: Sometimes, grouping your various policies, like management liability and landlord insurance, with the same provider through businessinsuranceconsulting.com.au can lead to better pricing.
- Don't Just Auto-Renew: The "loyalty tax" is real. Always have a specialist broker from Business Insurance Consulting review your renewal to see if there is a more competitive option available.
Staying Prepared, Not Just Insured
The goal of insurance isn't just to have a piece of paper in a drawer; it is to have peace of mind that your livelihood is protected. In a climate where premiums are rising and weather events are more frequent, being "prepared" is a mindset.
By working with Business Insurance Consulting, you are getting a partner who understands the Brisbane landscape. We know which suburbs are seeing price spikes and which insurers are offering the best value for home and personal insurance or complex commercial risks.
Rising premiums are a challenge, but they don't have to be a mystery. With the right advice and a specialist team in your corner, you can navigate these changes and keep your business moving forward.
Whether you are a home owner, a small business operator, or an investment property expert, we are here to help. Reach out to the team at businessinsuranceconsulting.com.au today for a review of your current cover.
Disclaimer: This info is general advice only and doesn't consider your personal goals or financial situation. Before making a decision, please read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD). Give us a shout if you need specific advice!
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Contact: craig@businco.com.au | 0412 212 099 | businessinsuranceconsulting.com.au
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