Insurances

The Insurances market in Australia is projected to reach a market size (gross written premium) of US$85.10bn in 2024.
Among the different segments, Non-Life Insurances dominates the market with a projected market volume of US$62.07bn in 2024.
On average, each person in Australia is expected to spend US$3.19k on insurance in 2024.
In comparison to other countries, the United States is expected to have the highest nominal value with US$3.8tn in 2024.
The gross written premium in the Insurances market is projected to grow at an annual rate of 2.88% (CAGR 2024-2029), resulting in a market volume of US$98.07bn by 2029.
Once again, the United States is expected to generate the highest gross written premium in the global market with US$3.8tn in 2024.
Australia's insurance market is experiencing a rise in demand for cyber insurance due to the increasing frequency of cyber attacks.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

Over the past few years, the Insurances market in Australia has witnessed significant growth and transformation.

Customer preferences: Customers in Australia are increasingly looking for personalized insurance products that cater to their specific needs and lifestyle. There is a growing demand for digital insurance solutions that offer convenience and flexibility, allowing customers to manage their policies online easily.

Trends in the market: One noticeable trend in the Australian insurance market is the rise of Insurtech companies that are leveraging technology to streamline processes, enhance customer experience, and develop innovative insurance products. Additionally, there is a growing focus on sustainability and climate-related insurance products in response to the increasing awareness of environmental risks.

Local special circumstances: Australia's unique geographic location makes it particularly vulnerable to natural disasters such as bushfires, floods, and storms. As a result, there is a heightened awareness of the importance of insurance coverage for such events, driving the demand for comprehensive insurance policies that provide adequate protection.

Underlying macroeconomic factors: The stable economic growth in Australia has contributed to the overall expansion of the insurance market. With a growing middle-class population and increasing disposable income, more individuals and businesses are investing in insurance products to safeguard their assets and mitigate financial risks. Additionally, regulatory reforms and government initiatives have played a significant role in shaping the insurance landscape in Australia.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.