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Report
Australia Life And Non-life Insurance - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)
Market Report I 2025-06-01 I 150 Pages I Mordor Intelligence
Australia Life And Non-life Insurance Market Analysis
The Australia life and non-life insurance market reached USD 53.72 billion in 2025 and is forecast to expand to USD 67.14 billion by 2030, registering a steady 4.56% CAGR. Growth endures despite higher catastrophe losses, subdued investment yields, and post-Royal-Commission compliance costs because insurers are digitizing core systems, embedding cover in everyday transactions, and refining climate-risk pricing. Mandatory motor policies, superannuation-linked life cover, and rising corporate risk awareness underpin premium volumes, while generative AI underwriting and real-time catastrophe analytics safeguard margins.
Australia Life And Non-life Insurance Market Trends and Insights
Ageing Population & Retirement Savings Gap
Australia's 65-plus cohort is growing by 3.2% annually to 2030, lifting longevity and healthcare expenditure risks. TAL's research shows 62% of pre-retirees feel financially unprepared for retirement, amplifying demand for life, trauma, and aged-care-funding products. Superannuation balances create a captive distribution rail for group policies that automatically enroll members and streamline underwriting. Players are layering cognitive-decline riders, long-term-care cash benefits, and annuity-like draw-down features, positioning the Australia life and non-life insurance market as a cornerstone of post-retirement income planning. Digital engagement tools prompt policy reviews around milestone birthdays, reducing lapse rates and broadening coverage among retirees. Over the long run, favorable demography adds roughly 1.2% points to forecast CAGR, offsetting margin compression from low yields.
Climate-Linked Catastrophes Raise Non-Life Uptake
Natural disaster severity has intensified; Suncorp absorbed USD 756 million in hazard costs during fiscal 2024, well above allowance. The Reserve Bank warns that 4% of dwellings are uninsured and 7% are under-insured, prompting regulators to spotlight climate affordability gaps. Insurers now couple real-time radar, IoT sensors, and suburb-level hail modeling to price household risks by roof type and elevation. Parametric cyclone covers pay within days using wind-speed triggers, restoring trust in high-risk regions and supporting the Australia life and non-life insurance market premium base. Reinsurers reward data-driven mitigation with lower retentions, freeing capital for growth in strata, SME, and agricultural lines. The driver contributes an estimated 0.8%-point lift to market CAGR through 2030.
Low Interest-Rate Returns Pressure Profitability
The 10-year Australian Commonwealth bond yield has hovered near 3%, compressing spreads on legacy guaranteed portfolios. Life insurers struggle to reinvest maturing assets above liability-matching thresholds, eroding solvency margins. Capital-light unit-linked funds and protection-only covers are displacing traditional endowment products inside the Australia life and non-life insurance market. Yet, policyholders chasing yield turn to ETFs, reducing discretionary savings allocations to life wrappers. To defend margin, players hike risk charges, reprice renewable term business, and shift surplus into private credit strategies that add complexity and prolong product-approval cycles, trimming market CAGR.
Other drivers and restraints analyzed in the detailed report include:
Superannuation Reform Boosts Group Life Cover / Embedded Insurance via Fintech Ecosystems / Fraudulent Claims & Lengthy Settlements /
For complete list of drivers and restraints, kindly check the Table Of Contents.
Segment Analysis
Non-life business captured 70.2% of the Australia life and non-life insurance market in 2024 as compulsory third-party motor, property, and commercial liability lines anchor premiums. Catastrophe-responsive pricing enables underwriters to reset rates every 12 months, preserving underwriting margin even as claims volatility rises. The Australia life and non-life insurance market size for non-life products grew 6.1% in 2024 off the back of re-rated household policies following successive flood events. Life-sector realignment centers on group schemes that shaved 35 basis points from expense ratios through scale, spurring a 5.90% CAGR. Mental health claims now account for 18% of Zurich's life payouts, prompting benefit caps and value-based rehab partnerships that curb severity.
In parallel, the newly branded Acenda, born from Nippon Life's merger of MLC Life and Resolution Life, integrates data lakes across 2 million policies to cross-sell trauma and income-protection riders, boosting persistency inside the Australia life and non-life insurance market. Reinsurers, enticed by transparent data sharing, offer quota-share relief that frees up domestic capital for product innovation. Over the forecast horizon, non-life is expected to maintain its leadership, yet life is projected to add USD 5.8 billion in fresh premiums through hybrid investment-protection contracts that appeal to wealth accumulators seeking downside shields.
Brokers held 35.6% of the Australia life and non-life insurance market in 2024, dominating complex commercial placements such as directors-and-officers or trade credit. Relationship depth, bespoke wording expertise, and claims-support capability keep attrition low among mid-market clients. Still, digital portals now capture 22% of personal lines premiums and are posting a 4.67% CAGR. Direct channel net expense ratios average 23%, roughly 600 basis points below broker-sold motor business, drawing insurer investment toward self-serve apps and usage-based cover.
Embedded banking, retailer affinities, and super-app integrations reinforce the Australia life and non-life insurance market shift. Commonwealth Bank's 2024 pilot embedded just-in-time device protection into its shopping-cart API, tripling take-up compared with branch referrals. Broker consolidation counters digital leakage; Ardonagh's USD 1.45 billion acquisition of PSC delivers scale, shared analytics, and proprietary e-placement platforms. Forward-looking brokerages equip advisers with AI-powered risk-advice engines, melding human counsel with data-driven insights to defend relevance.
Australia Life and Non-Life Insurance Market is Segmented by Insurance Type (Life Insurance and Non-Life Insurance), Distribution Channel (Direct, Brokers, Banks, and More), Customer Segment (Individual Policyholders, Small & Medium Enterprises, and More), Premium Frequency (Regular Premium and Single Premium), and Region. The Market Forecasts are Provided in Value (USD).
List of Companies Covered in this Report:
Insurance Australia Group (IAG) / Suncorp Group / QBE Insurance Group / Allianz Australia / AIA Group / TAL Dai-ichi Life Australia / Zurich Australia / AMP Limited / MetLife Australia / Medibank Private / NIB Holdings / Genworth Mortgage Insurance Australia / ClearView Wealth / Cover-More Group / BT Financial Group / MLC Life Insurance / AIG Australia / QInsure / OnePath Life / HCF Life /
Additional Benefits:
The market estimate (ME) sheet in Excel format /
3 months of analyst support /
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Ageing population & retirement savings gap
4.2.2 Climate-linked catastrophes driving non-life uptake
4.2.3 Superannuation reform-linked life cover growth
4.2.4 Embedded insurance via fintech ecosystems
4.2.5 Parametric micro-insurance for rural & agri segments
4.2.6 AI-driven underwriting & personalised products
4.3 Market Restraints
4.3.1 Low interest-rate returns pressure profitability
4.3.2 Fraudulent claims & lengthy settlements
4.3.3 Post-Royal Commission trust deficit
4.3.4 Data-privacy curbs on health-data-led pricing
4.4 Value / Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Buyers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes
4.7.5 Intensity of Competitive Rivalry
5 Market Size & Growth Forecasts (Value, USD bn)
5.1 By Insurance Type
5.1.1 Life Insurance
5.1.1.1 Individual
5.1.1.2 Group
5.1.2 Non-Life Insurance
5.1.2.1 Fire
5.1.2.2 Motor
5.1.2.3 Marine
5.1.2.4 Health
5.1.2.5 Other Non-Life Insurance
5.2 By Distribution Channel
5.2.1 Direct
5.2.2 Brokers
5.2.3 Banks
5.2.4 Digital / Online
5.2.5 Other Channels
5.3 By Customer Segment
5.3.1 Individual Policyholders
5.3.2 Small & Medium Enterprises (SMEs)
5.3.3 Large Enterprises
5.4 By Premium Frequency
5.4.1 Regular Premium
5.4.2 Single Premium
5.5 By region
5.5.1 New South Wales
5.5.2 Victoria
5.5.3 Queensland
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)
6.4.1 Insurance Australia Group (IAG)
6.4.2 Suncorp Group
6.4.3 QBE Insurance Group
6.4.4 Allianz Australia
6.4.5 AIA Group
6.4.6 TAL Dai-ichi Life Australia
6.4.7 Zurich Australia
6.4.8 AMP Limited
6.4.9 MetLife Australia
6.4.10 Medibank Private
6.4.11 NIB Holdings
6.4.12 Genworth Mortgage Insurance Australia
6.4.13 ClearView Wealth
6.4.14 Cover-More Group
6.4.15 BT Financial Group
6.4.16 MLC Life Insurance
6.4.17 AIG Australia
6.4.18 QInsure
6.4.19 OnePath Life
6.4.20 HCF Life
7 Market Opportunities & Future Outlook
7.1 White-space & Unmet-need Assessment
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