Australian Insurers' Profits Soar to $6.1 Billion Amid Rising Premiums
Australian Insurers' Profits Soar to $6.1 Billion Amid Rising Premiums
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Australia's insurance industry has reported an annual after-tax profit of $6.1 billion in 2024, according to KPMG's annual review.
This figure is three times higher than the five-year average of $2 billion.
The substantial profit increase is attributed to significant premium hikes and a year with fewer severe weather events.
In 2025, the average customer paid 19.3% more for home insurance coverage ($1,277 up from $1,070) and 12% more for car insurance coverage ($845 up from $945). The absence of major weather catastrophes in 2024, with only two significant events—the Valentine's Day storms in Victoria and severe weather in NSW and Queensland in April—resulted in lower claims. Insurance companies had $566 million in losses from 49,000 claims, a significant decrease from the $2.356 billion paid out across 143,900 claims from catastrophes and significant events in 2023.
For tradespeople and small business owners, these developments highlight the importance of regularly reviewing insurance policies to ensure they are receiving value for money. Understanding the factors influencing premium increases can aid in making informed decisions about coverage and managing business risks effectively.
Published:Friday, 14th Nov 2025 Source: Paige Estritori
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Knowledgebase
Insurance broker: An agent acting on behalf of the insured (not the insurance company) who negotiates the terms and cover provided by the insurer in the insurance policy.
