Non-life insurances - Australia & Oceania

The Non-life insurance market in Australia & Oceania is expected to witness significant growth in the coming years.
According to projections, the market size in terms of gross written premium is anticipated to reach US$69.53bn by 2024.
Furthermore, the average spending per capita in this market is estimated to be US$1.60k in 2024.
With an annual growth rate of 3.46%, the gross written premium is expected to continue its upward trajectory.
By 2029, it is projected to reach a market volume of US$82.41bn.
This indicates a positive outlook for the Non-life insurance market in Australia & Oceania.
In terms of global comparison, the United States is anticipated to generate the highest gross written premium in 2024, amounting to US$2.5tn.
This highlights the dominance of the US market within the Non-life insurance industry.
With its high incidence of natural disasters, Australia has seen a surge in demand for non-life insurances to protect against property damage and loss.

Definition:

Non-life insurance, also known as general insurance, covers a wide range of insurance products that protect against financial losses related to events other than death. Non-life insurance is designed to provide policyholders with financial support and protection in various circumstances, like car accidents, property damage, and medical expenses.

Structure:

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, and the loss ratio – calculated as gross claim payments divided by gross written premium.

Health insurances
Motor Vehicle insurances
Property insurances
General Liability insurances
Legal insurances

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

The Non-life insurances market in Australia & Oceania is experiencing significant growth and development.

Customer preferences: Customers in Australia & Oceania are increasingly seeking non-life insurance products that provide comprehensive coverage for a wide range of risks. They value policies that offer flexibility, customization, and competitive pricing. Additionally, there is a growing preference for digital insurance solutions that provide convenience and ease of access to services.

Trends in the market: In Australia, the non-life insurance market is witnessing a trend towards innovative product offerings, such as parametric insurance and usage-based insurance. Insurers are leveraging advanced technologies, such as artificial intelligence and big data analytics, to better assess risks and tailor products to individual customer needs. Furthermore, there is a noticeable shift towards sustainable and environmentally friendly insurance options, reflecting the region's increasing focus on climate change and environmental conservation.

Local special circumstances: Australia & Oceania is prone to natural disasters such as bushfires, cyclones, and floods, which have a significant impact on the non-life insurance market. Insurers in the region are continuously adapting their products and risk management strategies to address these unique challenges. Additionally, regulatory frameworks and government policies play a crucial role in shaping the non-life insurance landscape, with insurers having to comply with stringent regulations to operate in the market.

Underlying macroeconomic factors: The growing economy in Australia & Oceania is driving the demand for non-life insurance products, as individuals and businesses seek to protect their assets and mitigate financial risks. Economic stability, population growth, and urbanization are key macroeconomic factors influencing the expansion of the non-life insurance market in the region. Moreover, increasing awareness about the importance of insurance coverage and changing consumer behaviors are contributing to the overall growth and development of the market.

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.