Insurers are grappling with evolving risks, emerging technologies, and regulatory challenges across the property, energy and infrastructure space.
Climate change and the Australian insurance industry
Natural disasters are driving up premiums. With only 5% of APAC climate losses insured in 2024, legal focus on exclusions is rising. Insurers are responding with flexible cover and clearer pricing.
Technology’s transformation in Australian property insurance
AI is streamlining underwriting, claims, and fraud detection. Insurers must balance innovation with regulatory compliance and cyber risk.
Chubb v WSP case: subrogation rights and AI in Protection and Indemnity (P&I) clubs
This case reinforces co-insured protection from subrogation. P&I clubs are using AI to improve claims and lower risk.
The rise of Autonomous Vessels (AVs) and aviation regulations
As AVs increase, Australia faces regulatory and cybersecurity hurdles. The 2024 aviation Charter boosts transparency on delays and cancellations.
Renewable energy risks and aging power assets in Asia
Renewables face performance issues in harsh conditions, while aging power assets are exposed to infrastructure and damage risks.
The industry must quickly adapt to change, balancing innovation with effective risk management.
Wes Rose Head of Property, Energy and Infrastructure +61 2 9064 1802 wes.rose@wottonkearney.com
Adam Chylek Strategic Growth Leader +61 2 8273 9940 adam.chylek@wottonkearney.com
3 standout insights across property, energy and infrastructure
Climate change: Rising risks and affordability pressures
Australia’s insurance sector is under strain from the increasing frequency and severity of bushfires, floods, cyclones, and hailstorms. Premiums have surged by 14% in a single year, with affordability and coverage in high-risk areas becoming major concerns. Courts are also scrutinising exclusions for climate-related damage, heightening litigation risks.
Insurers must balance financial stability with consumer expectations by adopting flexible coverage models, promoting climate resilience, and improving transparency in pricing. This trend is expected to accelerate as climate impacts deepen over time.
Technology and AI: Transforming insurance operations
AI and Generative AI are reshaping underwriting, claims handling, and fraud detection in Australia’s property and specialty insurance markets. These tools enable smarter risk assessment, faster claims processing, and enhanced compliance, but adoption remains limited, with most insurers yet to leverage AI.
Responsible integration of AI will be key to boosting efficiency, meeting regulatory requirements, and improving customer experience. As investment continues, insurers should expect AI to become a central driver of operational transformation over the next two years.
Regulation and liability: Shifting legal and compliance landscapes
New rulings and frameworks are redefining liability and compliance across the insurance industry. The Chubb v WSP decision aligns Australia more closely with UK approaches to subrogation against co-insureds, while the Aviation Charter of Rights signals stronger passenger protections. Drone expansion and autonomous vessel use are also prompting regulatory updates.
Insurers must monitor these shifts to refine policy wording, manage emerging risks, and stay compliant with evolving frameworks. This trend highlights the growing role of legal scrutiny and regulation in coverage outcomes.
“61% of insurers are citing evolving regulatory requirements as the top operational challenge for the year ahead.”
2025 Global Insurance Outlook, EY
“Only 5% of climate-related economic losses in APAC were insured in 2024, making it the largest gap globally.”
5 Top Trends for Risk Capital in 2025, Aon
Turning Point: Evolution of Power and Energy Insurance Claims Handling in the Age of Artificial Intelligence
Our most recent release from Wotton Kearney's Turning Point 2024/25 Competition looks at how artificial intelligence is reshaping how insurers assess and manage risk, particularly as Large Language Models (LLMs) like ChatGPT become more widely used.
Andrew Bott, Executive Loss Adjuster at Chubb Insurance and finalist in the competition explores this emerging landscape in his paper, Evolution of Power and Energy Insurance Claims Handling in the Age of Artificial Intelligence. He was supported by Audrey Wong, Senior Associate at Wotton Kearney (Singapore), in this work.
Andrew’s paper examines how LLMs work, where they add value, and why full automation is unlikely in the power and energy sector. With claims that are often bespoke and data-limited, human oversight remains essential. His paper also considers how AI is changing the risk profile of insureds, as reliance on LLMs introduces new operational risks and raises fresh challenges around cyber exclusions and policy wording.
As a finalist, Andrew was awarded $2,500 in travel vouchers to support his professional development.
Click here to download the paper and stay tuned for further updates, and details for the next edition of Turning Point 2026.
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