The latest market snapshot from GlobalData;
The general insurance industry in Australia is projected to grow at a compound annual growth rate (CAGR) of 8.8%, increasing from an AUD94.7 billion ($62.5 billion) in 2024 to AUD144.5 billion ($93.9 billion) by 2029, in terms of direct written premium (DWP), according to GlobalData, a leading data and analytics company.
According to GlobalData’s Australia General Insurance Report, the general insurance industry in Australia is estimated to reach AUD102.8 billion ($67.9 billion) in 2025, reflecting an annual growth rate of 8.6%. This growth will primarily be attributed to the rising demand for personal accident and health (PA&H) insurance, which accounted for 34.2% of total DWP in 2024. The industry is also supported by the increasing frequency of natural disasters, which has heightened the need for property and motor insurance. As insurers adapt to these evolving demands, the industry is set to expand, driven by consumer needs.
Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: “The growth of the general insurance industry in Australia is attributed to the increasing demand for insurance products that cover extreme weather events and rising premium prices due to inflation and the cost-of-living crisis. Factors such as heightened health consciousness and the need for comprehensive coverage against natural disasters are expected to support this growth trajectory.”
PA&H insurance is the largest line of business and is expected to account for 33.2% of the general insurance DWP in 2025. PA&H insurance is projected to grow by 5.3% in 2025, supported by the demand for private health insurance driven by escalating costs associated with medical care. According to Private Healthcare Australia, the number of individuals with health insurance has consistently increased, with more than 15 million Australians, or 54.9% of the population, currently holding health insurance.
Sahoo adds: “Additionally, changes in demographic factors, such as the aging population, will increase the demand for health insurance and may encourage insurers to enhance their products and services. Insurers in Australia have begun offering digital health solutions and personalized coverage to cater to diverse consumer needs.”
Property insurance is the second-largest line of business, with an estimated 27.0% share of the general insurance DWP in 2025. It grew by 14.7% in 2024 and is expected to register 13.7% growth in 2025. Rising claims costs, premium prices, operational expenses, inflationary pressures, and increasing construction costs drive this strong growth. The premium for home multi-risk insurance, which accounts for 66% of the property insurance net earned premiums in 2023, has increased by 65% over the last five years.
Furthermore, public and private sector investments in renewable energy and transport infrastructure, aimed at supporting the government’s plan to increase the share of renewables to 82% and reduce carbon emissions by 43% by 2030, will further strengthen the growth of property insurance.
Motor insurance is the third-largest line of business, estimated to account for 26.4% of the general insurance DWP in 2025. It is set to grow at a robust CAGR of 12.3% during 2025-29, driven by a rise in vehicle sales and soaring input costs. Comprehensive motor insurance premiums have surged by 42% since 2019, primarily due to escalating input costs. Insurers are now facing the challenge of adapting their policies to address the unique risks associated with electric and hybrid vehicles, as the market shifts towards more environmentally friendly options.
Other general insurance lines, such as financial lines, liability, and marine, aviation, and transit, are estimated to account for the remaining 13.4% share of the general insurance DWP in 2025.
Sahoo concludes: “The outlook for the general insurance industry in Australia remains positive. Insurers are expected to remain vigilant regarding rising claims costs, inflation, and the impact of climate change while focusing on innovation and customer-centric solutions. The integration of digital technologies and proactive risk management strategies will be crucial in ensuring sustainable growth in this evolving landscape. The expected reciprocal tariff from the US may further raise claims costs and pose a threat to insurers’ profitability.”
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