Insurance Australia Group (IAG) has reported a significant 91% increase in net profit for the first half of the 2025 financial year, reaching $778 million.
This surge is largely attributed to favourable weather conditions and a reduction in claims.
Despite this positive financial performance, IAG's CEO, Nick Hawkins, has indicated that insurance premiums are expected to continue rising, albeit at a slower pace than in previous years.
Mr. Hawkins highlighted that inflationary pressures have significantly impacted both insurers and policyholders, with costs escalating across Australia and New Zealand. He noted that while these pressures are beginning to ease, the cost of reinsurance has "dramatically changed," necessitating further premium adjustments. Reinsurance, which is insurance for insurers, allows companies to share risk globally. The increased cost of reinsurance is a major factor contributing to the rising premiums.
Furthermore, Mr. Hawkins pointed to climate change as a substantial risk affecting the insurance industry. He emphasized the need for proactive measures to strengthen community resilience and mitigate the impacts of severe weather events. This includes reconsidering planning decisions to avoid building in high-risk areas and implementing strategies to enhance the resilience of existing communities.
For real estate professionals, these developments underscore the importance of comprehensive insurance coverage. Rising premiums may affect the cost of insuring properties, making it crucial for agents and property managers to stay informed about market trends and adjust their insurance strategies accordingly. Understanding the factors driving premium increases can aid in making informed decisions to protect assets and ensure compliance with industry standards.
Published:Thursday, 12th Mar 2026 Source: Paige Estritori
AustralianSuper, one of Australia's largest superannuation funds, has announced a significant change to its default income protection insurance. Effective from 28 February 2026, the fund will reduce the default income protection cover to $1,000 per month. This adjustment aims to align insurance coverage with members' actual income levels and prevent over-insurance, which can erode retirement savings. - read more
CareSuper has announced an enhancement to its income protection insurance offerings. Starting 1 April 2026, members can apply for income protection cover up to 87% of their current income, including up to 12% super contributions. This is an increase from the previous limit of 85% of income, which included up to 10% super contributions. - read more
The Australian Prudential Regulation Authority (APRA) has recently mandated an additional capital requirement of $2 million for Sovereign Insurance Australia Pty Ltd. This directive is part of APRA's ongoing efforts to bolster the financial stability and resilience of insurers operating within Australia. - read more
The Australian Prudential Regulation Authority (APRA) has granted a new general insurance licence to Europ Assistance Australia, marking the company's official entry into the Australian insurance market. This development introduces additional competition and diversity within the sector. - read more
The Australian Prudential Regulation Authority (APRA) has released a landmark report emphasising the urgent need for ambitious action and investment to shield communities from the escalating impacts of extreme weather events. The Insurance Climate Vulnerability Assessment (ICVA) serves as a stress test, highlighting risks that are already materialising and supporting the insurance industry's calls for immediate mitigation efforts. - read more
Income protection insurance is designed to offer financial security when you're unable to work due to illness or injury. It provides a steady income, usually up to 75% of your pre-tax earnings, helping you maintain your lifestyle while you focus on recovery. - read more
Income protection insurance is a type of coverage designed to provide you with a steady income if you are unable to work due to illness or injury. Unlike other types of insurance, which may focus on lump-sum payments, income protection insurance prioritises regular income replacement to help cover your everyday expenses. - read more
Health insurance in Australia is a crucial aspect of ensuring you and your family receive the medical care needed without facing exorbitant costs. The healthcare system, consisting of both public and private sectors, offers various options to suit different needs and budgets. While the public sector (Medicare) provides essential services, private health insurance offers additional benefits such as faster access to services, choice of doctor, and coverage for services not included in Medicare. - read more
The modern Australian family faces a dynamic and ever-evolving set of health needs, with access to quality healthcare remaining a cornerstone of managing our wellbeing. As these needs shift through the different stages of life, the assurance of having a safety net in place can provide unparalleled peace of mind. It's this sense of security that makes adequate health insurance coverage indispensable in today's fast-paced society. - read more
Life's unpredictability can often bring unforeseen challenges, particularly when it comes to our finances. One day you might be climbing the career ladder, the next you could find yourself unable to work due to illness or injury. This is where income protection insurance steps in, serving as a financial safety net that ensures you can continue to meet your living expenses, even when the unexpected happens. - read more
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Knowledgebase
Deductible: The amount you must pay out-of-pocket for expenses before your insurance company covers the remaining costs.
