General Liability Insurance - Australia

The General Liability Insurance market market in Australia is projected to reach a market size (gross written premium) of US$6.50bn by 2024.
The average spending per capita in the General Liability Insurance market market in Australia is expected to amount to US$243.30 in 2024.
The gross written premium in Australia is also expected to show an annual growth rate of (CAGR 2024-2029), resulting in a market volume of US$8.04bn by 2029.
In global comparison, the United States is expected to generate the highest gross written premium of US$178.4bn in 2024.
The general liability insurance market in Australia is experiencing a growing demand due to increasing litigation risks faced by businesses.

Definition:

General liability insurance is a type of coverage that offers protection to businesses and individuals against financial losses resulting from third-party claims of bodily injury, property damage, or personal injury. When you have general liability insurance, you pay regular premiums to an insurer, and in return, the insurer helps cover legal costs, settlements, and damages if you or your business are found liable for causing harm to others. This insurance is vital for shielding individuals and businesses from the financial repercussions of legal claims and liabilities arising from accidents or incidents that occur on their premises or as a result of their actions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Liability insurance booked for individuals and businesses

Motor vehicles liability
Aircraft liability
Liability for ships
Reinsurance

The General Liability Insurance market in Australia is experiencing significant growth and transformation. Customer preferences in the Australian market are shifting towards more comprehensive coverage options that provide protection against a wide range of liabilities. Customers are increasingly looking for tailored solutions that address their specific business needs and potential risks. This demand for customized policies is driving insurers to innovate and offer flexible products to meet the evolving needs of businesses in Australia. Trends in the market indicate a rise in demand for General Liability Insurance due to increasing awareness among businesses about the importance of mitigating risks. The growing number of litigations and regulatory changes are also prompting businesses to secure adequate coverage to protect their assets and reputation. As a result, insurers are expanding their product offerings and enhancing their risk assessment capabilities to cater to the diverse needs of businesses in Australia. Local special circumstances in Australia, such as the unique regulatory environment and industry-specific risks, are influencing the development of the General Liability Insurance market. Insurers are adapting their strategies to comply with local regulations and provide specialized coverage for sectors with higher exposure to liabilities, such as construction, healthcare, and hospitality. This localized approach is enabling insurers to establish a strong presence in the Australian market and build trust among businesses seeking reliable insurance solutions. Underlying macroeconomic factors, including economic growth, business expansion, and increasing foreign investments, are contributing to the growth of the General Liability Insurance market in Australia. As the economy continues to evolve and businesses expand their operations, the need for comprehensive liability coverage is becoming more pronounced. Insurers are capitalizing on these opportunities by offering competitive premiums and innovative coverage options to attract a larger customer base in the Australian 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.