Demographic shifts and economic forces are reshaping the Australian life industry, presenting opportunities for insurers, according to GlobalData.

The data analytics and consulting group says awareness of and demand for risk products will grow as the proportion of people aged 65 and above exceeds 22% next year, up from 16% in 2020.

At the same time, cost-of-living pressures have stoked interest in affordable life products.

“The Australian life insurance market is at a pivotal juncture … The emphasis on affordability and accessibility will be crucial as the industry adapts to the changing needs of consumers,” senior insurance analyst Swarup Sahoo said.

“Insurers are expected to focus on developing flexible and cost-effective solutions to meet the needs of a diverse consumer base.

“The demand for life insurance is expected to grow, driven by a heightened awareness of financial security and the need for comprehensive coverage in an uncertain economic landscape.” 

GlobalData projects the market will record gross written premium of $26.2 billion this year and $27 billion next year. In 2027, GWP is tipped to rise to $28 billion, then $29.2 billion the following year.