Market trends and past rate changes offer some guidance ahead of renewals but do not always provide a complete picture to help insureds secure optimal results, according to an Aviso Specialty report.

“Typical industry market updates focus on averages and market cycles … data that often only tells half the story,” the report says.

“These indicators can provide insurance buyers with useful market context. At the same time, they often group businesses together, masking organisations’ individual risk profiles and reflecting conditions that may already be changing.”

The paper – Beyond Averages: Financial & Professional Lines 2026 Renewals – says reported market averages can contradict real-world outcomes in Australia.

It notes market averages reported by other brokerages are often premium-weighted rather than risk-weighted, and large complex programs have an outsized influence on observed trends.

“Much like the ASX, where index performance is heavily influenced by banks and resources due to their market weighting, Australia’s insurance market is similarly concentrated.

“Headlines about ‘average’ pricing, limits or loss often tend to mask materially different results across sectors, insurers, size, controls, claims history, jurisdiction, governance and broking experience.

“Adviser and insurer experience are always central to driving the best outcomes.”

Aviso outlines six actions astute insurance buyers take, including avoiding procurement-led tenders, paying attention to details and optimising renewal timing.

“The timing of your renewal can directly influence the level of insurer competition available. Policies renewed during periods of heightened market appetite may secure reductions that exceed broader market averages and results.”