Australian Insurers Achieve Record Profits Amid Rising Premiums
Australian Insurers Achieve Record Profits Amid Rising Premiums
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In 2024, Australia's insurance sector reported an after-tax profit of $6.1 billion, a significant increase from the five-year average of $2 billion.
This surge is primarily attributed to substantial premium hikes and a relatively calm year concerning natural disasters.
According to a report by KPMG, the industry's profitability was bolstered by a combination of increased premiums and fewer severe weather events. In 2025, the average customer paid 19.3% more for home insurance coverage, with premiums rising from $1,070 to $1,277. Similarly, car insurance premiums increased by 12%, from $845 to $945. These hikes have been a point of contention among consumers, especially given the substantial profits reported by insurers.
While insurers cite rising costs and the need to maintain financial stability as reasons for the premium increases, consumer advocacy groups have raised concerns about the affordability of insurance for the average Australian. The significant profit margins have led to calls for greater transparency in how premiums are calculated and justified.
For consultants and professionals, these developments underscore the importance of regularly reviewing insurance policies and staying informed about market trends. Understanding the factors influencing premium costs can aid in making informed decisions about coverage and ensuring that policies remain both comprehensive and cost-effective.
Published:Monday, 2nd Mar 2026 Source: Paige Estritori
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Knowledgebase
Indemnity: A legal principle that stipulates that insurance policies should restore the insured to the financial position they were in before the loss.
