Leslie Massey
The insurance industry in Australia is divided into three main segments: life insurance, general insurance, and health insurance. The market for life insurance in Australia is worth about $44 billion. The gross written premium (GWP) of the Australia general insurance market was AUD96.7 billion in 2023. The largest companies operating in the general insurance market in Australia are Suncorp, IAG, and QBE Insurance. The most common types of insurance held in Australia are car insurance, private health insurance, and home (building) insurance.
| Characteristics | Values |
|---|---|
| Market size of the General Insurance industry | $111.4 billion in 2025 |
| Number of businesses in the General Insurance industry | 77 |
| CAGR of the General Insurance industry between 2019 and 2024 | 4.3% decline, then 5.2% growth |
| Leading companies in the General Insurance industry | Suncorp, IAG, QBE Insurance |
| Most common types of insurance held | Car insurance, private health insurance, home insurance |
| Regulatory bodies | Australian Securities & Investments Commission (ASIC), Australian Competition & Consumer Commission (ACCC), Australian Prudential Regulation Authority (APRA) |
| Impact of COVID-19 | Forecasted losses in the hundreds of billions of dollars |
| Impact of natural disasters | Record-high premiums |
| Market size of the Life Insurance industry | $44 billion |
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What You'll Learn
Market share
Australia's insurance market can be divided into three main segments: life insurance, general insurance, and health insurance. The market is expected to grow over the next five years, with a projected CAGR of more than 8% during 2024-2028.
Life Insurance
The life insurance market in Australia is worth about $44 billion. The largest three life insurance companies in Australia, TAL, AIA, and Zurich, account for over 60% of the total market share and are all overseas-owned. Other prominent Australian life insurance companies include AMP Limited, Allianz, and friendly societies and credit unions. Life insurance products sold in Australia include term life insurance, disability income insurance, and superannuation investment products.
General Insurance
The general insurance market in Australia had a gross written premium of AUD 96.7 billion in 2023. The market is highly competitive, with Suncorp holding the most significant market share, followed by Insurance Australia Group (IAG), QBE, and Allianz. The key lines of business in the Australian general insurance market include non-life PA&H, motor, property, liability, and financial lines. In 2023, non-life PA&H held the highest share of premiums in the sector.
Health Insurance
Private health insurance in Australia has become less attractive due to rising premiums caused by an aging population and increased healthcare costs. As a result, the share of the population with private health insurance coverage has declined in the past decade. Medicare, the Australian Government's basic universal health insurance, covers essential services, while private health insurance is purchased to cover additional services.
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Government-provided insurance
The Australian insurance market is divided into three segments: life insurance, general insurance, and health insurance. The market for life insurance in Australia is worth about $44 billion. The largest three life insurance companies in Australia, TAL, AIA, and Zurich, account for over 60% of the total market share.
General insurance, the largest segment of which is motor vehicle insurance, is provided by government schemes or government insurers. The biggest companies operating in the general insurance market in Australia are Suncorp, IAG, and QBE Insurance. Suncorp holds the most market share in Australia.
The Australian government provides a basic universal health cover through the Medicare scheme. Medicare is available to Australian and New Zealand citizens, permanent residents in Australia, and people from countries with reciprocal agreements. It covers the cost of public hospital services and some or all of the costs of other health services, including GPs, medical specialists, physiotherapy, community nurses, and basic dental services for children. The Pharmaceutical Benefits Scheme (PBS) is also part of Medicare, making some prescription medicines cheaper.
Individuals and families can take out additional health insurance for services not covered by Medicare or for services provided in private hospitals. There are two kinds of cover: hospital cover for some or all of the costs of hospital treatment as a private patient, and general treatment ('ancillary' or 'extras') cover for some non-medical health services not covered by Medicare, such as dental, physiotherapy, and optical services. The government provides a means-tested rebate to help with the cost of private health insurance.
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Life insurance
The life insurance market in Australia is moderately consolidated, with a few major players dominating the market. The biggest companies in the Australian life insurance market are Zurich Financial Services, TAL Dai-ichi Life Australia, and AIA Australia. These three companies account for over 60% of the total market share and are all overseas-owned. Other major players in the market include Insurance Australia Group Limited, Suncorp Group, and Medibank Private Limited.
The life insurance industry in Australia has faced challenges in recent years due to the COVID-19 pandemic and the resulting economic environment. However, the industry has recorded its second year of profits, with statutory fund profits doubling to $1.2 billion in FY2023. The overall capital position across the industry remains strong, and the market size, as measured by annual premium, has increased, with life insurance premium income (excluding reinsurance) growing by 4.1% to $18.6 billion per annum.
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Health insurance
Australia's insurance market can be divided into three components: life insurance, general insurance, and health insurance. The health insurance market in Australia is dominated by Medibank and Bupa, who hold 52% of the market share between them. HCF, NIB, and HBF are also key players in the market.
The Australian Government provides a basic universal health cover through the Medicare scheme, which has been in place since 1984. Medicare is partly funded by a 2% levy paid by most taxpayers and covers all of the cost of public hospital services. It also covers some or all of the costs of other health services, including services provided by general practitioners (GPs) and medical specialists.
Individuals and families can take out additional health insurance for services not covered by Medicare or for services provided in private hospitals. There are two main types of private health insurance cover: hospital cover and general treatment ('ancillary' or 'extras') cover. Hospital cover includes some or all of the costs of hospital treatment as a private patient, while general treatment cover includes some non-medical health services not covered by Medicare, such as dental, physiotherapy, and optical services.
The popularity of private health insurance in Australia has been declining over the past decade due to rising premiums. An aging population, increased use of healthcare services, and associated increasing costs have contributed to higher premiums that people seem unwilling to pay. The average expenditure by private health insurance providers per person covered has increased by hundreds of dollars over the past decade.
The General Insurance industry in Australia includes motor vehicle insurance, home insurance, and reinsurance. Suncorp, IAG, and QBE Insurance are the biggest companies operating in this market, with Suncorp holding the most market share. Industry revenue has grown at a CAGR of 5.2% over the past five years and is projected to continue growing over the next five years.
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Motor vehicle insurance
Australia's insurance market can be divided into three components: life insurance, general insurance, and health insurance. Motor vehicle insurance falls under the category of general insurance, which also includes home insurance and reinsurance. Motor vehicle insurance is the largest segment of general insurance in Australia, with policyholders continuing to be lucrative for insurers.
The Motor Vehicle Insurance market in Australia is projected to reach a market volume of US$13.51 billion in 2029, indicating significant growth and a positive trajectory for the industry. This growth is driven by increasing awareness of the importance of insurance coverage for vehicles, with individuals recognising the value of protecting their vehicles through insurance policies. The average cost of car insurance in Australia is $929 per policy, according to the latest data from the financial services regulator, APRA. However, it's important to note that the actual car insurance premium paid will depend on various factors, including the level of cover, location, vehicle make and model, age, and more.
The gross loss ratio of domestic motor vehicle insurance in Australia has also been increasing, reaching 71.14% in June 2023, up from 55.32% in the previous year. This ratio indicates that the losses incurred by insurance companies in this sector are growing relative to the premiums earned. In terms of market share, Suncorp holds the most significant share in the General Insurance market in Australia, which includes motor vehicle insurance.
Overall, the Motor Vehicle Insurance market in Australia is experiencing growth and is expected to continue doing so in the coming years, driven by various macroeconomic factors, population growth, and increasing awareness of the importance of insurance coverage for vehicles.
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Frequently asked questions
The three main segments of the insurance industry in Australia are general insurance, life insurance, and health insurance.
Motor vehicle insurance, home insurance, and reinsurance are all considered general insurance in Australia.
The gross written premium of the Australian general insurance market was AUD 96.7 billion in 2023 and is expected to grow at a CAGR of more than 8% from 2024 to 2028. The market size of the entire insurance industry in Australia is estimated to be $111.4 billion in 2024.
Some of the largest insurance companies in Australia are Suncorp, IAG, QBE Insurance, AAI, Allianz, Medibank, and Bupa HI.
Australian insurers offer lump-sum total and permanent disability insurance and trauma (critical illness) insurance, which is unusual compared to other countries. Additionally, the Australian government provides a basic universal health cover through the Medicare scheme, which is funded by a 2% levy paid by most taxpayers.
