Australian Insurers' $6.1 Billion Profit Sparks Affordability Concerns
Australian Insurers' $6.1 Billion Profit Sparks Affordability Concerns
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In 2024, Australia's insurance industry reported an after-tax profit of $6.1 billion, a significant increase from the five-year average of $2 billion.
This surge in profitability is attributed to substantial premium hikes and a year with fewer severe weather events.
According to KPMG's annual review, the average home insurance premium rose by 19.3%, reaching $1,277, while car insurance premiums increased by 12% to $845. These increases have raised concerns about the affordability of insurance for many Australians.
Scott Guse, a partner at KPMG, noted that the absence of major weather catastrophes in 2024 contributed to the industry's profitability. However, consumer advocates argue that the steep premium hikes are placing undue financial pressure on policyholders.
As the industry continues to navigate the balance between profitability and consumer affordability, it is crucial for insurers to consider the financial impact on their customers and explore ways to mitigate rising costs.
Published:Monday, 26th Jan 2026 Source: Paige Estritori
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Knowledgebase
Insurance Underwriter: An insurance company, a financial institution that sells insurance.
