Australia’s general insurance industry is projected to grow significantly, with direct written premiums (DWP) expected to reach $146.9 billion by 2029, according to GlobalData.
The market is forecast to grow at a compound annual growth rate (CAGR) of 9.2%, rising from $103.1 billion in 2025.
This growth is attributed to factors including increased demand for natural disaster coverage, inflation-driven premium adjustments, and economic recovery. Rising vehicle sales and heightened awareness of extreme weather risks are also expected to drive the sector.
GlobalData’s analysis suggests that the Australian general insurance market will expand by 8.9% in 2025.
Sneha Verma, senior insurance analyst at GlobalData, identified key trends supporting this trajectory.
“The general insurance industry in Australia has progressed well and witnessed a higher growth in 2023 and 2024. The growth is driven by increasing health awareness as well as an increase in demand for natural catastrophe (nat-cat) insurance policies. A similar trend is expected to continue in 2025, which will also be supported by a revival in the economy,” she said.
Personal accident and health (PA&H) insurance remains the largest segment, accounting for 34.2% of premiums in 2024. The line grew by 7.2% in that year, bolstered by an increase in private health insurance membership.
The growth in PA&H is partly due to rising healthcare costs. According to the Australian Bureau of Statistics, medical expenses increased by 5.6% from January to September 2024 compared to the same period the previous year. Health insurance costs also rose by 14% during this time.
GlobalData projects PA&H insurance to grow at a 4.5% CAGR between 2025 and 2029.
Property insurance, the second-largest segment, accounted for 25.8% of premiums in 2024 and grew by 15.4% that year.
Demand for natural disaster coverage continues to rise as Australia experiences more frequent extreme weather events. Infrastructure investment is another factor, with national spending on infrastructure forecast to reach $270.4 billion by 2028, according to the Australian Infrastructure Budget Monitor.
Property insurance is expected to grow at a 13.3% CAGR through 2029.
Motor insurance, comprising 25.6% of premiums in 2024, grew by 12.6% last year, supported by a resurgence in vehicle sales.
Data from the Federal Chamber of Automotive Industries indicated a 6.5% increase in new car sales in the first half of 2024 compared to the prior year.
Motor insurance is projected to grow at a 12.7% CAGR over the next five years.
Marine, aviation, transit (MAT), liability, and financial lines collectively made up 14.4% of DWP in 2024. While smaller in market share, these lines continue to play a role in diversifying the industry’s portfolio.
While the sector is positioned for growth, Verma noted challenges ahead.
“The Australian general insurance industry is set to experience consistently high growth over the next five years. However, increasing claim payouts due to rising inflation and an increase in losses due to frequent nat-cat events will remain a significant challenge for general insurers,” she said.
