Industry premiums to top $123 billion by 2027: GlobalData
Direct written premiums in the Australian general insurance market are projected to reach $86.8 billion this year and rise to $123.1 billion in 2027, according to data analytics and consulting firm GlobalData.
GlobalData Insurance Analyst Sutirtha Dutta says the industry has witnessed an upward growth trend since the slowdown in 2020 and last year it grew by 8.1% – its best performance in the past five years.
This year the industry is expected to grow 9.5% and 9.8% next year.
“The growth will be supported by increasing healthcare awareness after the pandemic, rising demand for natural catastrophe insurance due to climate change, and a rise in property and motor insurance premium rates,” GlobalData says.
Personal Accident & Health insurance is the leading line of business in the Australian market, accounting for 34.8% of the premiums this year.
Motor insurance placed second with 24.8% share of premiums. GlobalData says motor is expected to expand at a compound annual growth rate of 10.3% between now and 2027, driven by a rise in vehicle sales.
Property is the third largest line of business, accounting for 24.4% of premiums. The line is projected to post a compound annual growth rate of 13.6% from now to 2027.
“Challenging market conditions leading to a rise in premiums and an increase in the demand for natural catastrophe policies due to the presence of extreme weather events will support property insurance growth,” GlobalData says.
Liability, Financial Lines, Marine, Aviation and Transit (MAT), and Miscellaneous insurance make up the remaining 16% of premiums.