Non-life insurances - Australia | Statista Market Forecast

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$2.33k 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$2.5tn 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.

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

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.

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.