Renewal Shock: Why Your Insurance Renewal Isn't the Market Price

Key Takeaways:

• Your renewal premium is one insurer’s number, not the market price - and the two are often a long way apart
• Where two or more insurers quoted at renewal, the dearest was a median 1.56x the cheapest - and one in five was 2x or more
• The biggest renewal risk isn’t just price - it’s discovering, too late, that your insurer’s appetite for your risk has changed

The renewal letter lands. The premium’s up - maybe a little, maybe a lot - and there’s a due date a couple of weeks out. Most people glance at it, sigh, and pay. That’s how inertia creeps in.

Here’s the thing we see again and again: a renewal isn’t the market price. It’s one insurer’s view of your risk on one particular day. Take that same risk to the market and the numbers can move dramatically.

Why does your renewal premium go up?

Often, the big drivers are broader market factors as much as anything specific to you. Across the renewals we handle, a few causes come up again and again:

• Portfolio re-rating - the insurer has reviewed an entire class of business and lifted rates across the board
• Shifting appetite - your occupation, building type or postcode has moved out of favour, so the price climbs (or the insurer quietly stops wanting the risk)
• Rising reinsurance and claims costs - passed straight through to your premium
• Indexation - sums insured are bumped up for inflation and construction costs, and the premium follows

These pressures are real - insurers and industry analyses alike point to rising claims costs, disaster and climate risk, construction-cost inflation and a tighter global reinsurance market. But they still add up to one insurer’s number, shaped by that insurer’s year - not a competitive market price.

Is the renewal price actually the best price?

Not always - and the spread can be wider than most people expect. We can put numbers on it.

Over the last 12 months we re-marketed more than 130 renewals. In the 33 of those where two or more insurers gave us a comparable quote, the dearest was a median of 1.56 times the cheapest - and in one in five the dearest was at least double. The widest gap we saw was 8.5x. Same risk, broadly comparable cover, wildly different prices.

That spread is the whole point. If your renewal happens to come from the insurer at the top of that range, you could be paying nearly double what the same cover costs elsewhere - and you’d never know unless someone shopped it.

What actually happens when we re-market a renewal?

Re-marketing isn’t just clicking “compare”. It’s taking your risk back out to a panel of insurers, getting referrals assessed, and negotiating. Here’s what that looks like in practice.

A residential landlord - the renewal worth shopping

At renewal we took this owner’s property to the market rather than rolling the existing policy over. The quotes came back spread from around $1,960 to $3,160 across different insurers - more than a $1,200 gap on the same building. We placed the option that struck the best balance of cover and value at roughly $2,700 (the cheapest quote isn’t automatically the best cover - weighing that up is the other half of the job). The point isn’t the single number; it’s that a $1,200 spread existed at all, and you only see it if someone takes the renewal to the market.

A construction services business - when “renewal” isn’t even on the table

This one’s the risk people don’t see coming. The business had changed what it did - shifting from doing the work itself to coordinating sub-contractors. At renewal, several insurers (including ones happy with it the year before) declined to quote: the occupation had moved outside their appetite. We worked through the activity breakdown, confirmed there were no labour-hire arrangements, and placed cover with a specialist underwriter at around $1,300. The lesson: a renewal assumes nothing’s changed. When something has, you can find yourself uninsurable on the old terms - and you want to find that out early, not on the due date.

A manufacturer - re-marketing a big-ticket renewal

For a manufacturer carrying products liability, the renewal market came back with indicative quotes ranging from about $12,600 up to $13,900. By going back to the underwriter with the detail that matters - right of recourse against suppliers, a documented risk-management programme, quality-control procedures - we secured the most competitive of them, placing cover at around $12,600. On a premium that size, working the renewal rather than accepting the top quote is worth real money.

When does auto-renewing actually cost you?

Auto-renewal feels efficient. It isn’t, when:

• Your premium has jumped and you assume that’s “just the market” (it might be one insurer’s market)
• Your business or property has changed and the policy no longer reflects it
• Your sum insured has been indexed up and you’re now paying for cover you may not need - or worse, indexed too little and you’re underinsured
• You’ve had a quiet year with no claims and your loyalty is being priced as inertia

How to handle your renewal without the shock

• Start early. Three to four weeks out. Re-marketing and referrals take time.
• Don’t accept blind. Treat the renewal as a starting quote, not a final price.
• Disclose what’s changed. New activities, higher turnover, renovations, a claim - all of it affects the right cover and price.
• Compare cover, not just premium. The cheapest renewal with a gutted excess or new exclusions isn’t a saving.
• Use the leverage. A broker re-marketing your risk gives the incumbent a reason to sharpen their number too.

Frequently Asked Questions

Why has my insurance renewal gone up?

Renewal increases are often driven by broader market factors as much as anything specific to you. Insurers re-rate whole portfolios, change their appetite for certain occupations or postcodes, pass on rising reinsurance and claims costs, and index sums insured for inflation. Your renewal reflects one insurer’s current position - not the wider market.

Should I just accept my insurance renewal?

Not without checking it against the market. A renewal is one insurer’s number. When we re-marketed renewals over the last 12 months and two or more insurers quoted, the dearest was a median of 1.56 times the cheapest - so accepting the renewal blind can mean paying well over the odds.

Can a broker get me a better price at renewal?

Often, yes - either a lower premium, broader cover for similar money, or simply confirmation your renewal is already competitive. A broker re-markets your risk across multiple insurers and negotiates, rather than accepting the incumbent’s renewal at face value.

When should I start my insurance renewal?

Three to four weeks before the due date. Re-marketing across insurers, getting referrals assessed and confirming details takes time, especially for trickier risks. Leaving it to the last day limits your options.

Does switching insurers at renewal affect my cover?

It can, which is why price isn’t the only thing to compare. Excess levels, exclusions, sums insured and claims continuity all need checking when you move. A good broker compares cover, not just premium, before recommending a switch.

Don’t pay the lazy tax

The renewal premium isn’t a verdict - it’s an opening offer. The investors and business owners who come out ahead are the ones who treat it that way: question it, test it against the market, and make the insurer earn the renewal.

That’s the job we do at renewal for every client - re-market the risk, compare the cover, and come back with the real picture. Sometimes that means a sharper price; sometimes it’s confirmation you’re already well placed. Either way, you’re not paying the lazy tax.

Renewal landed and looks steep? Send it our way before you pay it. Call 02 9000 1155 or email [email protected], or get in touch here.

Related reading

• How a Broker Saved a Landlord From Underinsurance - Why a review matters
• How Much Does Landlord Insurance Cost in 2026? - Real premium ranges from our book
• Professional Indemnity Costs Are Rising for Engineers - A market under pressure
• Public Liability Insurance - Cover for trades and small business

Reviewed by: Marel Pencev Principal Insurance Broker, Tank Insurance

Last updated: 3 June 2026

This is general information only. It does not take your objectives, financial situation, or needs into account. Always read the relevant Product Disclosure Statement (PDS) and seek independent advice before making insurance decisions.