Australian Insurers' $6.1 Billion Profit Sparks Affordability Concerns
Australian Insurers' $6.1 Billion Profit Sparks Affordability Concerns
0
In 2024, Australia's insurance industry reported an after-tax profit of $6.1 billion, a significant increase from the five-year average of $2 billion.
This surge in profitability is attributed to substantial premium hikes and a year with fewer severe weather events.
According to KPMG's annual review, the average home insurance premium rose by 19.3%, reaching $1,277, while car insurance premiums increased by 12% to $845. These increases have raised concerns about the affordability of insurance for many Australians.
Scott Guse, a partner at KPMG, noted that the absence of major weather catastrophes in 2024 contributed to the industry's profitability. However, consumer advocates argue that the steep premium hikes are placing undue financial pressure on policyholders.
As the industry continues to navigate the balance between profitability and consumer affordability, it is crucial for insurers to consider the financial impact on their customers and explore ways to mitigate rising costs.
Published:Monday, 26th Jan 2026 Source: Paige Estritori
Australia's life insurance sector is witnessing a significant transformation, with mental health conditions emerging as the predominant cause of Total and Permanent Disability (TPD) claims. Recent data from the Council of Australian Life Insurers (CALI) indicates that mental health-related TPD claims now constitute nearly one-third of all such claims, highlighting a profound shift in the factors leading Australians to exit the workforce permanently. - read more
The Australian life insurance industry has reported a remarkable financial turnaround in the fiscal year 2025, with earnings more than doubling to $360 million, according to the latest figures from the Australian Prudential Regulation Authority (APRA). This 210% increase in profit after income tax marks a significant recovery from previous years' losses and underscores the sector's resilience and adaptability. - read more
Australia's general insurance sector has reported an unprecedented after-tax profit of $6.1 billion for the year 2024, according to KPMG's General Insurance Insights report. This figure is three times higher than the five-year average of $2 billion, marking a significant milestone in the industry's financial performance. - read more
In 2024, Australia's insurance industry reported an after-tax profit of $6.1 billion, a significant increase from the five-year average of $2 billion. This surge in profitability is attributed to substantial premium hikes and a year with fewer severe weather events. - read more
Recent data indicates a significant rise in insurance premiums across Australia, with home insurance premiums increasing by 16% on average over the past year. Some insurers, such as Kogan, RAC, and Honey, have raised rates by over 30%, leading to growing concerns about affordability for consumers. - read more
When life throws unexpected challenges your way, being financially secure becomes a priority. Income protection is a safety net designed to help you manage your finances when you're unable to work due to illness or injury. It provides peace of mind, ensuring that you can maintain your lifestyle and meet your financial obligations, even when your regular income stream is disrupted. - read more
Life insurance and estate planning are critical components of financial security. They ensure that your loved ones are protected financially when you are no longer around. By understanding these tools, you can take significant steps to secure your family's future. - read more
Life is unpredictable, and unforeseen health issues can strike at any time, profoundly impacting your financial well-being. An unexpected illness can bring not only physical pain but also financial strain as medical bills pile up and the capacity to generate income diminishes. - read more
Life insurance is a contract between an individual and an insurance company. The insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. - read more
The importance of life insurance in financial planning: Life insurance isn’t just a policy; it’s a cornerstone of comprehensive financial planning. By protecting your family’s financial future, life insurance offers peace of mind, knowing that your loved ones will be taken care of in the event of your untimely passing. It’s not solely about leaving behind a legacy, but also ensuring that your family can maintain their standard of living, pay off debts, and cover end-of-life expenses without financial burden. - read more
Start Here !
Apply now for your free Income Insurance assessment and price
comparisons!
All quotes are provided free and without obligation. We respect your privacy.
Knowledgebase
Premium: The amount paid for an insurance policy, usually on a regular basis, to maintain coverage.
