Life Insurance Online :: News
SHARE

Share this news item!

Record Profits for Australian Insurers Amid Premium Increases

Balancing Profitability and Consumer Affordability in the Insurance Sector

Record Profits for Australian Insurers Amid Premium Increases?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Australia's insurance industry has reported an after-tax profit of $6.1 billion for the year 2024, a figure that is three times higher than the five-year average of $2 billion.
This substantial increase in profitability coincides with significant hikes in insurance premiums across various sectors.

Several factors have contributed to this surge in profits:

  • Premium Increases: Insurers have implemented substantial premium hikes to offset rising costs associated with claims and reinsurance.
  • Favorable Weather Conditions: The year 2024 experienced fewer severe weather events, leading to a reduction in claims payouts.
  • Investment Returns: Improved performance in investment markets has bolstered insurers' financial positions.

While profitability is essential for the sustainability of the insurance industry, the concurrent rise in premiums has raised concerns about affordability for consumers. For consultants and professionals who rely on various insurance products to protect their businesses, these developments highlight the importance of regularly reviewing insurance policies and exploring options to ensure cost-effective coverage.

To navigate this landscape, consider the following steps:

  • Compare Providers: Regularly compare offerings from different insurers to identify the most competitive rates and coverage options.
  • Assess Coverage Needs: Evaluate your specific insurance needs to avoid over-insuring or under-insuring, both of which can have financial implications.
  • Negotiate Terms: Engage in discussions with insurers to negotiate terms and premiums, especially if you have a history of few or no claims.

The current scenario underscores the delicate balance between maintaining a profitable insurance industry and ensuring that insurance products remain accessible and affordable for consumers. Staying informed and proactive is key to managing insurance costs effectively in this evolving market.

Published:Friday, 6th Feb 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Allianz Australia and AWP Australia Penalised for Misleading Practices
Allianz Australia and AWP Australia Penalised for Misleading Practices
06 Feb 2026: Paige Estritori
In a significant regulatory action, Allianz Australia and its subsidiary, AWP Australia, have been fined $16.8 million for making false and misleading statements to consumers. This penalty underscores the critical need for transparency and honesty within the insurance industry. - read more
Rising Insurance Premiums Challenge Northern Australian Homeowners
Rising Insurance Premiums Challenge Northern Australian Homeowners
06 Feb 2026: Paige Estritori
Homeowners in Northern Australia are grappling with substantial increases in insurance premiums, despite the establishment of a cyclone reinsurance pool intended to alleviate such financial burdens. This situation raises critical questions about the pool's effectiveness and the broader challenges facing the insurance industry in high-risk regions. - read more
Record Profits for Australian Insurers Amid Premium Increases
Record Profits for Australian Insurers Amid Premium Increases
06 Feb 2026: Paige Estritori
Australia's insurance industry has reported an after-tax profit of $6.1 billion for the year 2024, a figure that is three times higher than the five-year average of $2 billion. This substantial increase in profitability coincides with significant hikes in insurance premiums across various sectors. - read more
Escalating Construction Costs Impact Insurance Claims and Repair Timelines
Escalating Construction Costs Impact Insurance Claims and Repair Timelines
06 Feb 2026: Paige Estritori
The Australian construction industry is currently grappling with significant cost escalations, which are having a direct impact on insurance claims and repair timelines. According to a recent report by Crawford & Company, various factors are contributing to this trend, including rising material prices, labour shortages, and an increase in builder insolvencies. - read more
IAG Partners with Codafication to Streamline Property Claims Management
IAG Partners with Codafication to Streamline Property Claims Management
06 Feb 2026: Paige Estritori
Insurance Australia Group (IAG), a leading insurer in Australia, has announced a strategic partnership with Brisbane-based insurtech company Codafication to enhance its property claims management process. This collaboration introduces the Crunchwork platform, designed to automate workflows and provide real-time updates to all parties involved in the claims process. - read more


Life Insurance Articles

Understanding Life Insurance: Securing Your Family's Future
Understanding Life Insurance: Securing Your Family's Future
Defining life insurance and its importance: Life insurance is a pivotal financial product designed to protect your loved ones from economic hardship in case of your untimely death. It acts as a safety net, ensuring that your family can maintain their standard of living, cover outstanding debts, and afford future expenses like education and retirement. - read more
How Life Insurance and Estate Planning Work Together for Your Benefit
How Life Insurance and Estate Planning Work Together for Your Benefit
For many Australian families, the concept of estate planning might evoke imagery of vast wealth and complex legal documents, reserved for the very affluent. However, this misconception overshadows the universal importance of having an estate plan, which at its core, is about ensuring your loved ones are cared for and your wishes are honored upon your passing—even if you don't consider yourself wealthy. - read more
The Impact of Health and Medical History on Insurance Premiums
The Impact of Health and Medical History on Insurance Premiums
Life insurance is a critical component of a sound financial plan. It provides financial security and peace of mind to you and your loved ones, ensuring that they are taken care of in the event of your untimely death. - read more
The Impact of Hobbies and High-Risk Activities on Life Insurance Costs
The Impact of Hobbies and High-Risk Activities on Life Insurance Costs
Life insurance is an essential financial protection that provides peace of mind to policyholders and their loved ones. The premiums you pay are determined by various factors, including age, health, lifestyle, and occupation. - read more
Securing Your Family's Future: How Life Insurance Offers Peace of Mind
Securing Your Family's Future: How Life Insurance Offers Peace of Mind
Life is a tapestry of precious moments, each framed by the inevitable uncertainty that the future holds. The awareness that our paths are peppered with unpredictability can often cast a shadow of concern, affecting how we cherish the present. For many, the well-being of family remains the cornerstone of life's purpose, driving the need for a foundation that offers stability and reassurance in the face of life's unexpected challenges. - read more


Start Here

Life Cover Amount:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Insurance Deductible:
the amount that an insured is required to contribute toward an insurance claim as stipulated in an insurance policy. Otherwise known as the "policy excess".