FY27 Outlook: The 5 Trends Reshaping Property & Motor Claims in Australia

In FY27, many of the challenges facing insurers are not new. What is changing is their scale, complexity and impact on customer outcomes.

After several years of claims inflation, labour shortages and severe weather events, the Australian claims environment continues to evolve rapidly.

The five trends I believe will have the greatest impact on Property and Motor claims in FY27 are:

1. Repair cycle times remain under pressure

While supply chains have largely stabilised since COVID, repair times remain elevated. Labour shortages, complex repair requirements, approval delays and increased claim complexity continue to extend both commencement and completion times.

Longer repair cycles increase claims handling expense, temporary accommodation and hire car costs, customer complaints and leakage across the claims lifecycle. Cycle time remains one of the most important operational metrics for insurers.

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2. Builder and repairer capacity is becoming a structural challenge

Australia continues to experience significant shortages of skilled trades.

Industry estimates suggest a material shortfall in skilled construction workers nationally, with demand expected to increase further through housing programs and major infrastructure projects.

For insurers, this means reduced builder and repairer capacity, higher repair costs, increased competition for quality suppliers and greater vulnerability following catastrophe events.

The lead-up to the Brisbane 2032 Olympics is also expected to place additional pressure on already constrained repair networks across Queensland.

2. Builder and repairer capacity is becoming a structural challenge

Australia continues to experience significant shortages of skilled trades.

Industry estimates suggest a material shortfall in skilled construction workers nationally, with demand expected to increase further through housing programs and major infrastructure projects.

For insurers, this means reduced builder and repairer capacity, higher repair costs, increased competition for quality suppliers and greater vulnerability following catastrophe events.

The lead-up to the Brisbane 2032 Olympics is also expected to place additional pressure on already constrained repair networks across Queensland.

3. AI moves from experimentation to operational reality

FY27 will likely be the year AI transitions from pilot programs to deployment.

Australian insurers are increasingly leveraging AI across FNOL triage, image-based assessment, liability determination, fraud identification, repair scoping, complaint management and workforce productivity.

The winners will not be those adopting the most AI. They will be the organisations that successfully combine AI with strong operational processes, governance and human expertise.

4. Vehicle complexity is driving higher motor claim costs

The rapid growth of EVs and technology-rich vehicles continues to reshape motor claims.

Advanced driver assistance systems, integrated sensors, batteries and onboard computing systems are increasing repair complexity and cost.

Many insurers are also experiencing longer parts lead times, increased total loss rates, lower salvage outcomes and limited specialist repair capability.

The challenge is particularly evident with newer vehicle brands where parts availability and repair capability remain immature.

5. Climate volatility is becoming a permanent claims driver

Severe weather events are no longer isolated shocks. They are becoming a recurring operational reality. Insurers must now manage more frequent catastrophe events, supply chain surges, capacity constraints, higher reinsurance costs and greater customer expectations during recovery.

The challenge is no longer simply managing catastrophes. It is building claims operations that can scale quickly while maintaining customer experience.

What does this mean for insurers and the claims ecosystem?

The common thread across all five trends is the need for operational excellence. The organisations that succeed in FY27 will be those that can reduce friction, strengthen supplier networks, leverage technology effectively and deliver faster outcomes for customers.

At The Bridge International, we have supported more than 10 significant claims transformations over the past five years across Property, Motor and Commercial portfolios.

Our practitioners bring hands-on operational experience across:

• Claims operating model redesign

• Supply chain optimisation

• Repair model transformation

• FNOL and fulfilment redesign

• Capability uplift and training

• Performance frameworks and governance

• AI and automation readiness

The outcomes have included significant reductions in cycle time, lower repair costs, improved customer satisfaction and sustainable operational efficiency.

FY27 will not be defined by new challenges. It will be defined by how effectively insurers respond to the challenges we already know are coming.

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About The Bridge International

The Bridge International is a trusted, alternative, innovative and purpose driven management consultancy operating in Australia, New Zealand and internationally. It is a values and purpose-driven organisation headquartered in Sydney, with teams in Queensland, Victoria, and South Australia. Their vision is clear - to become the most trusted professional services consultancy in our chosen markets.

The Bridge International’s leadership team brings deep C-suite experience, having walked in the shoes of their clients. This practitioner-first approach, combined with strong consulting capability, enables them to quickly define the problem and design pragmatic, fit-for-purpose solutions that are actionable and effective - not theoretical.

Clients trust The Bridge International to provide honest advice and work as an extension of their team, delivering measurable results and strong returns on investment. The company’s fair-value model reflects its fast-track approach, lower overheads, and commitment to having senior experts on every assignment.

The Bridge International’s practices span: Strategy & Corporate Development, Customer & Operations, Leadership, Culture & Capability, Insurance, Program Delivery & Embedment. The range of services offered enables the company to support a wide range of client needs, providing a bridge between strategy and execution, embedding sustainable solutions and transferring knowledge so that clients succeed over the long term.

About CXO2

CXO2 is The Bridge International group’s specialist customer experience and service transformation business. CXO2 works with boards and executive teams to improve enterprise performance by strengthening service and operational foundations, then translating strategy into execution that works.

CXO2’s approach is pragmatic and commercial. We help organisations reduce avoidable contact, improve cost to serve, protect trust and lift productivity, while embedding change so outcomes stick. CXO2 works across industries as practitioners who have led and delivered in complex environments, partnering closely with teams to simplify complexity and turn customer intent into clarity and measurable impact.

About Bridge to Good

Bridge to Good is how The Bridge International turns business into good. Through its foundation, the company supports Lifeline, Cancer Council NSW, and Dementia Australia, helping create impact where it matters most.