As Australia enters the spring months, FM is advising commercial property owners and risk managers to prepare for a potential increase in hail-related damage.
The recommendation follows research from the University of New South Wales indicating that climate change may contribute to more intense hailstorms, particularly in densely populated regions.
Hailstorms have historically caused significant insured losses in Australia, with impacts extending across property, infrastructure, and critical systems.
FM has outlined six practical measures for businesses to reduce exposure to hail-related disruptions as storm season approaches.
The insurer’s first recommendation is to revisit and refine severe weather preparedness plans.
This includes ensuring systems are in place to monitor weather conditions and receive early alerts.
Real-time data can provide critical lead time for businesses to activate protective actions before a storm arrives.
Incorporating updated hail and weather data into risk assessments is also essential.
FM recommends using geographic hail trend data – such as its FMDS01-34 hail map – to evaluate localised risk patterns. This can inform more targeted and effective mitigation strategies.
Regular inspections of building features such as skylights and vents are also advised.
Non-metallic skylights and smoke vents can become brittle over time, increasing the likelihood of hail penetration.
Damage to these components can result in water ingress, potentially leading to extensive internal damage.
FM recommends replacing compromised materials before the storm season begins.
Where possible, businesses should consider retrofitting buildings with impact-resistant materials.
Roofs that show signs of cracking, aging or embrittlement are especially vulnerable.
The use of older materials, including cement asbestos, may present additional risks, including contamination following damage.
Investing in building materials that have been independently tested and rated for hail resistance can further strengthen properties against damage. This includes roofing systems, exterior wall panels, skylights, and rooftop photovoltaic units.
FM’s testing data can assist businesses in selecting appropriate materials based on exposure and performance ratings.
Another preventive measure involves installing hail guards on HVAC equipment, particularly over condenser cooling fins. These guards can shield sensitive systems from direct hail impact and help reduce repair costs and operational downtime.
Michael Hunneyball, operations chief engineer at FM, said the financial impact of hailstorms is growing and requires proactive management.
“Hailstorms are no longer just a weather event, they are a significant and escalating business risk, costing Australia billions in insured losses” he said. “It’s critical for commercial property managers and risk managers to get ahead of this risk now, before the season hits. Insurance brokers also have a vital role to play in advising their clients at this time, ensuring businesses are not only adequately covered but also proactively mitigating their exposure.”
The discussion around hail risk aligns with findings from Aon’s latest Client Trends 2025 report, which outlined four broad risk trends affecting global businesses:
The report highlighted how these forces are increasingly interconnected and affecting decision-making at the organisational level.
