Embracing innovation in the machinery insurance sector

As insurers grapple with economic pressures, environmental challenges, and technological advancements, UAA continues to lead with resilience and innovation, ensuring brokers and insureds are supported through these dynamic times.

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The first half of 2025 has brought transformative changes to the plant and machinery insurance industry.

In recent months, the insurance market has seen a shift towards unsustainable pricing strategies, driven by capacity coming into the market and new operators entering the space.

This is at a time of rising claims costs, higher frequency levels and increasing claims severity.

In this regard, UAA rises above competitors by maintaining disciplined underwriting practices, offering brokers and clients stability and longterm confidence amidst market volatility.

At the same time, financial pressures have driven clients to seek reduced renewal premiums. These adjustments come alongside a surge in claims triggered by severe weather events, particularly in Queensland and Northern NSW.

UAA’s adaptable strategies and informed approach ensure it navigates these challenges effectively.

Trends and emerging risks

UAA Business Development Manager Jackie McCarthy said the first half of the year had highlighted several key trends shaping the sector.

“A softening market has led to reduced premiums, even as claims activity has risen, including a notable spike in theft incidents in Sydney,” she said.

“Reflecting the current economic climate, there is growing demand for financial protection coverage, emphasising the importance of evolving insurance products to meet client needs.”

Technological innovation continues to play a pivotal role.