This is according to GlobalData which also stated that the general insurance industry in Australia is expected to increase by 9.5% in 2023 and 9.8% in 2024.
In addition, the growth will be attributed to increasing healthcare awareness after the pandemic, rising demand for natural catastrophic insurance due to climate change, and a rise in property and motor insurance premium rates.
Sutirtha Dutta, insurance analyst at GlobalData, commented: “The Australian general insurance industry has witnessed an upward growth trend since the slowdown in 2020 and grew by 8.1% in 2022, recording the highest growth during the last five years. The increase in healthcare awareness post pandemic and a rise in vehicle sales have supported the growth of general insurance.”
Personal accident and health insurance in Australia
Personal accident & health insurance (PA&H) accounted for 34.8% of the premiums in Australia in 2023.
Furthermore, the post-pandemic increase in healthcare awareness has led to a rise in the membership of private health insurance, which has registered growth for 10 consecutive quarters starting June 2020.
According to Private Healthcare Australia (PHA), membership for private health insurance grew by 2% in 2022 and around 55% of the Australian population has private health insurance. The rise in membership has supported PA&H DWP to grow by 5.4% in 2022 and 6.4% in 2023.
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Dutta continued: “The increasing cost of healthcare due to rising inflation will also support the growth of PA&H insurance. The consumer price index (CPI) inflation in Australia reached 5.2% in August 2023. Rising healthcare costs, which are expected to put an additional burden on uninsured consumers, will support the demand for private health insurance. PA&H insurance is expected to grow at a CAGR of 6.0% during 2023-2027.”