In 2026, Australian insurers will navigate a transformed class action environment. While the overall volume of filings remains steady, the nature of claims has shifted dramatically. Securities class actions - once comprising around 40% of all proceedings - have declined following a series of court rulings favouring defendants, prompting litigation funders to redirect capital. Emerging areas now include consumer protection, privacy breaches, employment disputes, and ESG-related claims such as greenwashing and climate risk misrepresentation. These new categories often involve broader affected groups, clearer causation, and reputational leverage, making them attractive to funders and plaintiffs alike. For insurers, this trend signals a need to reassess exposure across professional indemnity, directors & officers, and cyber liability lines. Policy wording, aggregate limits, and exclusions must be reviewed to ensure resilience against increasingly complex and socially driven litigation. Proactive engagement with insureds and scenario modelling will be key to managing this evolving risk landscape.