Logistics operators across Australia face substantial insurance premium increases as insurers respond to growing climate-related claims and operational risks.

Premium Increases

Market Trends

Fleet insurance: 15-25% increases typical
Warehouse/property: 20-40% in flood zones
Cargo insurance: 10-20% broadly
Business interruption: Significant tightening

Regional Variations

Higher risk zones experiencing:

Northern Queensland: Severe cyclone loading
NSW Northern Rivers: Flood exclusions common
Victoria: Bushfire zone restrictions
Western Sydney: Flood risk reassessment

Contributing Factors

Claims History

2022 flood events: Record logistics claims
Supply chain disruptions: Extended impacts
Infrastructure damage: Prolonged recovery
Stock losses: Significant write-offs

Risk Reassessment

Insurers reviewing:

Location and exposure analysis
Business continuity planning
Climate adaptation measures
Risk mitigation investments

Industry Response

Risk Management

Operators investing in:

Alternative site arrangements
Improved weather monitoring
Inventory distribution strategies
Enhanced building standards

Coverage Adjustments

Common adaptations:

Higher excess acceptance
Parametric insurance products
Self-insurance for smaller events
Multi-insurer coverage structures

The trend reflects broader insurance market adjustments to climate risk across commercial sectors.