Non-life insurances - Australia

Australia

The Non-life insurance market in Australia is projected to reach a market size (gross written premium) of US$62.07bn by 2024.
The average spending per capita in the Non-life insurance market is expected to be US$2,325.00 in 2024.
This indicates the amount spent on Non-life insurance per person in Australia.
Furthermore, the gross written premium is forecasted to have an annual growth rate (CAGR 2024-2029) of 3.58%.
This growth rate suggests that the market volume will increase steadily, reaching US$74.00bn by 2029.
These numbers highlight the potential growth and expansion of the Non-life insurance market in Australia over the next few years.
In a global perspective, it is worth noting that the United States is expected to generate the highest gross written premium.
It is projected to reach US$2,500.0bn in 2024.
This demonstrates the significant market size and dominance of the United States in the Non-life insurance industry on a global scale.
The non-life insurance market in Australia is experiencing a surge in demand due to increasing awareness about the need for comprehensive coverage.

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Analyst Opinion

Australia's Non-life insurances market is witnessing significant developments driven by various factors.

Customer preferences: Customers in Australia are increasingly seeking non-life insurance products that provide comprehensive coverage, easy accessibility, and competitive pricing. With a growing awareness of the importance of insurance in mitigating risks, there is a rising demand for customizable policies that cater to individual needs and preferences.

Trends in the market: One notable trend in the Australian non-life insurance market is the shift towards digitalization. Insurers are leveraging technology to streamline processes, enhance customer experience, and offer innovative products. Additionally, there is a growing emphasis on sustainability and climate-related risk management, with insurers developing products to address environmental concerns and natural disasters specific to the region.

Local special circumstances: Australia's unique geographic location exposes it to various natural disasters such as bushfires, floods, and cyclones. This has led to a specialized focus on catastrophe risk management within the non-life insurance sector. Insurers in Australia are constantly innovating to provide coverage against these specific risks, thereby shaping the market landscape.

Underlying macroeconomic factors: The stable economic growth in Australia, coupled with a growing population and urbanization, is contributing to the expansion of the non-life insurance market. As disposable incomes rise, individuals and businesses are increasingly willing to invest in insurance products for protection and financial security. Moreover, regulatory reforms and government initiatives play a crucial role in shaping the competitive dynamics of the market.

Methodology

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.