Australia Insurance Market Report and Forecast 2024-2032

Australia Insurance Market Size

The Australia insurance market value reached USD 73.4 billion in 2023. The market is further projected to grow at a CAGR of 1.8% between 2024 and 2032, reaching a value of USD 86.7 billion by 2032.

Australia Insurance Market Growth

The growth of the insurance market in Australia is influenced by the increased healthcare awareness post-pandemic, leading to a rise in demand for insurance coverage, especially in the health and medical insurance sectors.

Additionally, the escalating demand for natural catastrophic insurance due to climate change impacts and the surge in property and motor insurance premium rates contribute to the Australia insurance industry growth. The industry’s growth is also bolstered by rising vehicle sales, which is driving the share of the motor insurance segment.

Australia Insurance Market Analysis

The trend towards open insurance, driven by initiatives like Australia's Consumer Data Right legislation, is reshaping the insurance sector. Insurers are focusing on leveraging data transparency to offer more personalised products and services, enhancing customer engagement, and driving demand of the Australia insurance market.

Sustainability, particularly environmental, social, and governance (ESG) factors, is becoming a strategic priority for insurers, aligning with the global push towards net-zero commitments. This trend not only addresses climate-related risks but also presents opportunities for insurers to innovate in a changing market landscape.

Australia Insurance Industry Outlook

In 2022, the Australian insurance industry experienced substantial financial activity, with gross incurred claims totalling USD 36.5 billion, according to the Australian Prudential Regulation Authority. Several key regions recorded the highest claims and earned premiums, New South Wales led with USD 4.532 billion in gross incurred claims, closely followed by USD 4.147 billion in gross earned premiums. Queensland reported USD 3.544 billion in gross incurred claims and USD 2.723 billion in gross earned premiums. Victoria's insurance market has noticed USD 1.837 billion in gross incurred claims against USD 2.549 billion in gross earned premiums.

According to the Australian Prudential Regulation Authority, in 2022, the Australian insurance industry experienced notable impacts with two catastrophes and two significant event declarations, resulting in USD 4.83 billion in incurred claims, a 186% increase. The number of claims increased by 28% to 298,357, with the average claim amounting to USD 16184.67, marking a notable 124% rise compared to previous periods, which is driving the growth in the Australia insurance market revenue.

As reported by the Australian Prudential Regulation Authority, the 2022 product performance of various insurance policies highlighted significant financial activity. The domestic motor vehicle category led with USD 8.56 billion in industry-earned premiums, while claims and underwriting expenses totalled USD 8.91 billion. Homeowners' and householders' insurance followed, earning USD 8.29 billion in premiums against USD 9.50 billion in claims and expenses. Professional indemnity insurance recorded USD 2.70 billion in earned premiums, with claims and expenses amounting to USD 1.85 billion. The commercial motor vehicle sector earned USD 2.40 billion in premiums, incurring USD 2.65 billion in claims and expenses. Travel insurance reported premiums of USD 75.04 million and claims and expenses totalling USD 538.47 million, which is contributing to the Australia insurance demand growth.

The Australian Bureau of Statistics reports that Australia's population grew to 26.65 million in 2023 from 26.01 million in 2022. This population increase has expanded the customer base and heightened the demand for various insurance products, including health, life, and property insurance, as more individuals seek financial protection and security, thereby driving growth in the Australia insurance market.

The Australian Bureau of Statistics reports that Australia's population grew to 26.65 million in 2023 from 26.01 million in 2022. This population increase has expanded the customer base and heightened the demand for various insurance products, including health, life, and property insurance, as more individuals seek financial protection and security, thereby driving growth in the Australia insurance market.

A strong regulatory framework enhances consumer protection and market stability, which in turn drives the Australia insurance market demand.

• Wide range of insurance products catering to various sectors and customer needs.

• Strong awareness and uptake of insurance products among businesses and individuals.

Intense price competition pressures margins and profitability.

• Challenges in efficient and timely claims processing affect customer satisfaction.

• Reliance on global reinsurance markets exposes insurers to external market conditions.

Embracing digital platforms for enhanced customer service and operational efficiency driving the Australia insurance market opportunities.

• Growing demand for coverage against cyber risks and climate-related events.

• Increasing need for retirement and healthcare-related insurance products.

Economic downturns impact consumer spending and demand for insurance.

• The evolving regulatory landscape may necessitate compliance adjustments.

• Exposure to frequent natural disasters and their financial implications on insurers.

Key Players in the Australia Insurance Motor Market and their Key Initiatives

Insurance Australia Group Limited

• Introduced new climate resilience insurance products. 

• Invested in cybersecurity measures to meet the growing demand of the Australia insurance market. 

Suncorp Group Limited

• Announced a new operating model and leadership structure for growth.

• Increased investment in green and sustainable insurance products. 

QBE Insurance (Australia) Limited

• Partnered with fintech firms for innovative solutions. 

• Increased investment in mental health and wellbeing initiatives for employees 

Allianz Australia Limited

• Introduced comprehensive cyber insurance products to capture the Australia insurance market opportunities. 

• Partnered with major retailers for exclusive insurance packages.

Australia Insurance Industry Segmentation

“Australia Insurance Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Life Insurance

• Property and Casualty Insurance

• Non-Life Insurance

• Health and Medical Insurance

Market Breakup by Organisation Size

• Small and Medium-sized Enterprises (SMEs)

• Large Enterprises

Market Breakup by Mode

• Online

• Offline

Market Breakup by End Use

• Individual

• Corporate 

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Australian Capital Territory

• Western Australia

• Others

Australia Insurance Market Share

Individual insurance in Australia offers financial protection against illness or accidents, ensuring access to healthcare, income replacement, peace of mind, estate planning benefits, tax deductions, travel coverage, critical illness support, personal liability protection, and education funding, all of which drive the Australia insurance market revenue.

The Australia insurance market dynamics and trends are being driven by corporate insurance, which provides risk management, employee benefits, business continuity, legal compliance, property protection, liability coverage, cyber insurance, professional indemnity, business interruption coverage, and financial stability by transferring risk to insurers.

Leading Companies in the Australia Insurance Market

Market players are emphasising strategies such as personalised insurance offerings, and inclusive insurance options to enhance customer experience and to maintain a competitive edge in the market.

• Insurance Australia Group Limited

• Suncorp Group Limited

• QBE Insurance (Australia) Limited

• Allianz Australia Limited

• Dai-ichi Life Holdings, Inc.

• AIA Group Limited

• Zurich Financial Services Australia Ltd.

• Resolution Life NOHC Pty Limited

• Medibank Private Limited

• Steadfast Group Limited

• Others

Key Highlights of the Report

Australia Insurance Market Report Snapshots

Australia Insurance Market Size

Australia Insurance Market Growth

Australia Insurance Market Analysis

Australia Insurance Market Share

Australia Insurance Companies