Rising Costs and Labour Shortages Impact Insurance Claims Processing in 2026
Crawford & Company Reports Increased Duration and Expenses in Claims Settlements
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In 2026, Australian insurance claims are experiencing increased processing times and higher costs, as reported by Crawford & Company.
The primary factors contributing to this trend include persistent labour shortages, elevated construction expenses, and the growing complexity of claims, particularly in strata and high-density environments.
Tim Butler, Head of Contractor Connection and CRD at Crawford & Company, noted that while the market is not chaotic, tight capacity and rising complexity are driving up costs. He highlighted that the repair market is a small segment of the broader construction sector, meaning many cost pressures are macroeconomic and beyond insurers' control.
For construction businesses, this environment underscores the importance of comprehensive insurance coverage and proactive risk management strategies. By understanding and addressing these challenges, companies can better navigate the evolving landscape of insurance claims and maintain operational resilience.
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Knowledgebase
Subrogation: The process by which an insurance company seeks to recover the amount paid to the policyholder from a third party responsible for the loss.
