Regulators consider tightening measures as the trend towards long-term claims rises among workers

The increase in volume and length of workers' claims across Australia has significantly raised premium costs. However, even if state parliaments pass new regulations to manage and limit workers' compensation claims, this will not absolve employers of their duty to identify and manage mental health risks within the workplace — which is a fundamental obligation.

Meanwhile, there is a focus on establishing workplace environments that improve workers' mental well-being and physical health as employee retention becomes key amid 'the great burnout' and persistent recruitment struggles.

In our Business Insurance Market Conditions and Risk Dynamics H2 2023 report, we review the current factors affecting workplace risks, including:

  • Substantial premium increases due to prolonged pandemic effects and a surge in number and duration of claims.
  • Significant rise in workplace issues resulting inlegal representation and common law claims.
  • Emergence of new laws that legally prohibit insurance provisions in the case of employer health and safety fines.
  • Regulators are bringing in additional specialist psychosocial safety inspectors to investigate workplace risk.

Other topics in the report include:

  • Claims — supply shortages and significant weather events drive up claims inflation rate
  • D&O — negotiable premiums provide a more favourable market for companies seeking D&O
  • Cyber — risk awareness takes centre stage as breach response resilience is prioritised
  • Property — increased rates and variable capacity are becoming the new norm
  • Marine & cargo — regulatory scrutiny of business ESG credentials to increase
  • Energy & renewables — insurer appetite is growing in a period of transition

For more insights on the state of the business insurance market in Australia and risk dynamics, download our full report.

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