Gitnux/Report 2026

Australia Insurance Industry Statistics

Floods drove AUD 5.6B of insurance claims in 2022—how much did payouts rise overall and where do claim pressures show up across the market?
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Australia Insurance Industry Statistics
Daniel VargaWritten by Daniel Varga·Fact-checked by Olivia Thornton
Last verified Jul 25, 2026
Verified via a 4-step process
01Source

Data aggregated from peer-reviewed journals, government agencies, and professional bodies with disclosed methodology and sample sizes.

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Within the next 32 days
Australia’s insurance industry reflects real-world risk—supporting households and businesses through natural disasters, motor incidents, and home building losses. Ahead, you’ll see how premiums are distributed across segments and compulsory lines, how claim payments and frequencies move in 2022, and what that means for profitability. We also summarize key regulatory and operational developments, from APRA’s CPS 230 to ASIC’s product intervention actions.

Key Takeaways

  • General insurance claims payments totalled AUD 38.7 billion in 2022, a 4.8% increase YoY
  • Natural disaster claims from floods reached AUD 5.6 billion in 2022
  • Motor claims frequency was 12.5% in 2022, with average claim size AUD 5,200
  • In 2022, Australia's general insurance industry reported gross written premiums (GWP) of AUD 52.4 billion, a 5.2% increase from 2021
  • The Australian insurance market size was valued at AUD 120.5 billion in gross premiums in 2023, projected to grow at a CAGR of 4.8% to 2028
  • Total insurance premiums in Australia grew by 3.1% year-on-year to AUD 158.2 billion in FY2022
  • Compulsory insurance lines comprised 55% of total GWP at AUD 78.9 billion in 2022
  • Home building insurance premiums totalled AUD 9.2 billion in FY2022, up 7.8% YoY
  • Motor vehicle insurance GWP was AUD 18.4 billion in 2022, representing 35% of general insurance
  • Net profit after tax for general insurers was AUD 4.2 billion in 2022, ROE 12.1%
  • Life insurers reported AUD 2.8 billion profit in 2022, with investment yield 3.8%
  • Combined operating ratio for general insurance was 92.3% in 2022
  • APRA introduced CPS 230 Operational Risk in 2022, requiring resilience testing
  • The 2022 Federal Budget allocated AUD 200 million for insurance affordability measures
  • ASIC RG 269 mandated product intervention powers used on 15 insurance products in 2022

In 2022, Australia’s general insurers paid out 38.7 billion as premiums rose, driven by weather and rising claim costs.

Related reading

01 · Category

Claims And Losses26 stats

01
General insurance claims payments totalled AUD 38.7 billion in 2022, a 4.8% increase YoY
02
Natural disaster claims from floods reached AUD 5.6 billion in 2022
03
Motor claims frequency was 12.5% in 2022, with average claim size AUD 5,200
04
Home building claims payouts were AUD 4.2 billion, up 11% due to weather events in 2022
05
Loss ratio for general insurance improved to 68.4% in 2022 from 72.1% in 2021
06
Workers' comp claims totalled AUD 5.8 billion, with 85,000 claims lodged in 2022
07
CTP claims payments hit AUD 4.9 billion in NSW alone in 2022
08
Life insurance claims paid out AUD 13.2 billion in 2022, including 18,500 death claims
09
Health insurance benefits paid were AUD 22.1 billion, covering 12.5 million services in 2022
10
Property damage claims averaged AUD 15,000 per claim in 2022
11
Cyber claims cost insurers AUD 850 million in 2022, with average claim AUD 45,000
12
Travel insurance claims totalled AUD 450 million, mostly medical at 60%
13
Liability claims rose 9% to AUD 3.1 billion amid litigation surge in 2022
14
Pet insurance claims paid AUD 320 million, with average claim AUD 1,200 in 2022
15
Total catastrophe claims exceeded AUD 9.2 billion, highest since 2011 Black Saturday
16
Income protection claims duration averaged 18 months, paying AUD 2.8 billion in 2022
17
Funeral insurance claims were 95% approved, totalling AUD 180 million in 2022
18
Business interruption claims from COVID totalled AUD 1.5 billion in 2022 tail claims
19
Strata claims frequency was 22% higher in flood-prone areas at 15 claims per 100 policies
20
Denied claims rate was 4.2% industry-wide in 2022, down from 5.1% in 2021
21
Average motor total loss claim was AUD 28,500 in 2022
22
TPD claims paid AUD 1.9 billion for 4,200 approvals in 2022
23
Health extras claims hit AUD 8.7 billion, dental 35% of total in 2022
24
Fraudulent claims detected saved AUD 420 million in 2022
25
Marine cargo claims totalled AUD 250 million, 12% loss ratio in 2022
26
Landlord tenant damage claims averaged AUD 3,800 per claim in 2022
Interpretation

Claims And Losses Interpretation

In Australia’s general insurance claims and losses, payouts rose to AUD 38.7 billion in 2022, but the loss ratio improved to 68.4% from 72.1% in 2021, even as major weather driven events such as AUD 5.6 billion in flood claims and AUD 4.2 billion in home building payouts pushed claims volumes.

02 · Category

Market Size And Growth30 stats

01
In 2022, Australia's general insurance industry reported gross written premiums (GWP) of AUD 52.4 billion, a 5.2% increase from 2021
02
The Australian insurance market size was valued at AUD 120.5 billion in gross premiums in 2023, projected to grow at a CAGR of 4.8% to 2028
03
Total insurance premiums in Australia grew by 3.1% year-on-year to AUD 158.2 billion in FY2022
04
The property and casualty insurance segment accounted for 42% of total premiums in 2022, equating to AUD 65.8 billion
05
Australia's insurance penetration rate stood at 3.4% of GDP in 2022, up from 3.2% in 2021
06
Non-life insurance premiums reached AUD 60.1 billion in 2022, representing 38% of the total insurance market
07
The insurance industry's contribution to Australia's GDP was 2.8% in 2022, with total assets under management at AUD 2.1 trillion
08
Direct insurance premiums written grew by 4.5% to AUD 142.3 billion in FY2023, driven by compulsory lines
09
The market is expected to reach AUD 180 billion by 2027, with a CAGR of 5.1% from 2022-2027
10
Life insurance premiums totalled AUD 28.4 billion in 2022, a 2.8% YoY growth
11
Total reinsured premiums in Australia were AUD 15.2 billion in 2022
12
The industry employed over 55,000 people directly in 2022, contributing AUD 12.5 billion in wages
13
Insurance density per capita was AUD 4,850 in 2022, highest in compulsory CTP insurance at AUD 450 per person
14
Market concentration: Top 10 general insurers held 85% of GWP in 2022
15
Digital insurance sales channel grew to 25% of new policies in 2022 from 18% in 2020
16
Total invested assets of insurers reached AUD 1.8 trillion in 2022, yielding 3.2% return
17
Post-COVID recovery saw premium growth accelerate to 6.2% in H2 2022
18
The sector's Herfindahl-Hirschman Index (HHI) for general insurance was 1,250 in 2022, indicating moderate concentration
19
Foreign direct investment in Australian insurance was AUD 45 billion in 2022
20
Insurtech startups raised AUD 320 million in funding in 2022
21
Total number of registered insurers: 185 in 2022, down 2% from 2021 due to mergers
22
Premiums per household averaged AUD 2,800 in 2022
23
The market share of mutual insurers declined to 12% in 2022 from 15% in 2019
24
ESG-linked insurance products grew 15% YoY to AUD 4.2 billion in premiums in 2022
25
Cyber insurance premiums surged 28% to AUD 1.1 billion in 2022
26
Total catastrophe losses insured were AUD 8.5 billion in 2022
27
Penetration in rural areas lagged urban by 22% in premium density in 2022
28
Mobile-only insurance users reached 8% of policyholders in 2022
29
Average policy retention rate across industry was 84.2% in 2022
30
Total premiums indexed to CPI grew 4.1% adjusted in 2022
Interpretation

Market Size And Growth Interpretation

Australia’s insurance market is steadily expanding, with total premiums reaching AUD 158.2 billion in FY2022 and the market valued at AUD 120.5 billion in gross premiums in 2023, projected to grow at a 4.8% CAGR to 2028.

03 · Category

Premium Income25 stats

01
Compulsory insurance lines comprised 55% of total GWP at AUD 78.9 billion in 2022
02
Home building insurance premiums totalled AUD 9.2 billion in FY2022, up 7.8% YoY
03
Motor vehicle insurance GWP was AUD 18.4 billion in 2022, representing 35% of general insurance
04
Workers' compensation premiums reached AUD 7.1 billion in 2022, a 3.5% increase
05
CTP insurance premiums averaged AUD 450 per vehicle in NSW in 2022
06
Life risk premiums grew 1.9% to AUD 15.3 billion in 2022
07
Health insurance premiums totalled AUD 25.6 billion in 2022, with 45% community rating loading
08
Property insurance premiums increased 9.2% to AUD 12.8 billion due to flood risks in 2022
09
Travel insurance premiums rebounded 45% to AUD 1.2 billion post-COVID in 2022
10
Liability insurance GWP was AUD 4.5 billion in 2022, up 4.1%
11
Pet insurance premiums hit AUD 650 million in 2022, growing 22% YoY
12
Directors and Officers (D&O) premiums rose 15% to AUD 450 million amid regulatory scrutiny in 2022
13
Group life premiums accounted for 28% of total life premiums at AUD 8.0 billion in 2022
14
Single premium annuities totalled AUD 2.1 billion, down 5% in 2022
15
Expat health insurance premiums were AUD 180 million in 2022
16
SME business pack insurance premiums grew 6.8% to AUD 3.2 billion in 2022
17
Cyber insurance average premium per policy was AUD 12,500 in 2022
18
Funeral insurance premiums declined 12% to AUD 250 million due to regulatory changes in 2022
19
Income protection premiums totalled AUD 3.8 billion, with 2.1% growth in 2022
20
Landlord insurance premiums reached AUD 1.4 billion, up 8% amid rental market boom in 2022
21
Marine hull insurance GWP was AUD 320 million in 2022
22
Total personal accident premiums were AUD 950 million, growing 4.2% in 2022
23
Critical illness cover premiums hit AUD 1.2 billion in 2022, up 3.4%
24
Strata insurance premiums surged 18% to AUD 2.1 billion due to construction costs in 2022
25
Total reinsurance premiums ceded were 22% of GWP at AUD 11.5 billion in 2022
Interpretation

Premium Income Interpretation

In 2022, Australia’s premium income in general insurance was strongly driven by compulsory lines, which made up 55% of total GWP worth AUD 78.9 billion while motor vehicle insurance alone contributed AUD 18.4 billion and workers’ compensation rose to AUD 7.1 billion.

More related reading

04 · Category

Profitability And Financial Performance25 stats

01
Net profit after tax for general insurers was AUD 4.2 billion in 2022, ROE 12.1%
02
Life insurers reported AUD 2.8 billion profit in 2022, with investment yield 3.8%
03
Combined operating ratio for general insurance was 92.3% in 2022
04
Health funds net margin was 3.2% on AUD 25.6 billion revenue in 2022
05
Top insurer IAG's net profit rose 58% to AUD 958 million in FY2022
06
Suncorp Group's insurance profit was AUD 1.1 billion, ROE 14.5% in 2022
07
QBE's Australia/South Pacific division profit AUD 750 million, up 22% in 2022
08
Investment income for general insurers totalled AUD 3.9 billion in 2022
09
Expense ratio averaged 28.5% of premiums in general insurance 2022
10
Mutual insurers' average ROE was 10.2% vs 13.4% for listed in 2022
11
Credit losses provisioned at AUD 180 million industry-wide in 2022
12
Solvency coverage ratio for life insurers averaged 180% in 2022
13
General insurance capital adequacy: Prescribed Capital Amount coverage 1.6x in 2022
14
Dividend payout ratio averaged 65% for major insurers in 2022
15
EBITDA margin for insurtech firms averaged 15% in 2022
16
Asset risk charge for equities was 12% weighted in portfolios 2022
17
Net underwriting profit AUD 3.1 billion for general in 2022
18
Health funds' management expenses 12.1% of revenue in 2022
19
Reinsurance recoverables impacted profits by AUD 450 million in cat losses 2022
20
Average cost per policy acquisition was AUD 245 in 2022
21
Return on equity for workers' comp peaked at 16.2% in 2022
22
Interest expense coverage ratio 8.2x for industry debt in 2022
23
Tax effective rate 28.5% on profits in 2022
24
General insurers' unrealised gains on bonds boosted equity by 7% in 2022
25
Health insurers' reserves grew to 12 months benefits in 2022
Interpretation

Profitability And Financial Performance Interpretation

In 2022, insurers across segments showed generally solid profitability, with general insurers delivering AUD 4.2 billion net profit after tax and a 12.1% ROE, while general insurance’s combined operating ratio stayed at a profitable 92.3% and standout performers like IAG lifted net profit 58% to AUD 958 million, reinforcing strong financial performance under this category.

05 · Category

Regulatory And Policy Developments21 stats

01
APRA introduced CPS 230 Operational Risk in 2022, requiring resilience testing
02
The 2022 Federal Budget allocated AUD 200 million for insurance affordability measures
03
ASIC RG 269 mandated product intervention powers used on 15 insurance products in 2022
04
Royal Commission recommendations led to 50+ remediation programs costing AUD 1.2 billion by 2022
05
Private Health Insurance Sunset Clause reforms passed in November 2022
06
APRA's Heat Stress Scenario testing mandated for all ADIs and insurers from 2023
07
IDR scheme handled 45,000 complaints, 65% insurer upheld in 2022
08
Treasury's Insurance Affordability package legislated in 2022
09
CPS 511 Outsourcing reviewed 120 critical arrangements in 2022
10
Life Insurance Code of Practice updated with 22 new standards in 2022
11
General Insurance Code strengthened governance requirements from April 2022
12
AML/CTF reforms introduced beneficial ownership register in 2022
13
APRA fined 3 insurers AUD 15 million for conduct breaches in 2022
14
Standardised reinsurance facility for QLD floods approved in 2022
15
Consumer Data Right expanded to non-bank lending, impacting insurers in 2022 pilots
16
Occupational Violence scheme mandated for healthcare workers from 2022
17
Privacy Act amendments fined 8 insurers for data breaches in 2022
18
Sustainable Finance Taxonomy consultation closed in Dec 2022
19
AFCA membership compulsory for all insurers since 2022
20
CTP reforms in VIC cap at-fault claims from 2022
21
Prudential standard CPS 220 Risk Management updated cyber requirements 2022
Interpretation

Regulatory And Policy Developments Interpretation

In the Regulatory and Policy Developments space, Australia’s push for stronger oversight is clear as APRA’s new operational resilience and 2023 heat stress testing, alongside ASIC RG 269 actions on 15 insurance products in 2022 and 50 plus Royal Commission remediation programs costing AUD 1.2 billion by 2022, shows regulators shifting rapidly from recommendations to enforceable testing and product interventions.
Reference

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Daniel Varga. (2026, February 13). Australia Insurance Industry Statistics. Gitnux. https://gitnux.org/australia-insurance-industry-statistics
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Daniel Varga. "Australia Insurance Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/australia-insurance-industry-statistics.
Chicago
Daniel Varga. 2026. "Australia Insurance Industry Statistics." Gitnux. https://gitnux.org/australia-insurance-industry-statistics.

Sources & references

68 datasets cited across this report · attribution is report-level

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