Understanding the Factors Behind Rising Insurance Costs
0
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Insurance Australia Group (IAG), a leading insurer in Australia, has reported a significant 91% increase in net profit for the first half of the 2024-2025 financial year, reaching $778 million.
This substantial profit growth is largely attributed to favourable weather conditions during the period.
Despite this financial success, IAG's CEO, Nick Hawkins, has indicated that insurance premiums are expected to continue rising, albeit at a slower pace. He highlighted that inflationary pressures have significantly impacted both insurers and policyholders over recent years, leading to increased costs across various sectors in Australia and New Zealand.
Mr. Hawkins expressed optimism that the future appears more favourable for consumers, anticipating a reduction in the inflationary impact on insurance over the next six to twelve months. He noted that as inflationary pressures decrease and reinsurance costs stabilise, these factors will be reflected in future pricing. Consequently, premium increases are expected to align more closely with general inflation rates than in previous years.
For tradespeople, these developments underscore the importance of staying informed about insurance market trends. Understanding the factors influencing premium adjustments can aid in making informed decisions regarding coverage options. Additionally, exploring various insurance providers and policy options may help in finding the most cost-effective and comprehensive coverage tailored to specific trade requirements.
In summary, while IAG's recent profit surge reflects a period of favourable conditions, the forecasted continued rise in insurance premiums highlights the need for tradespeople to remain vigilant and proactive in managing their insurance needs.
Published:Friday, 2nd Jan 2026 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
In a strategic move to make life insurance more relevant to younger Australians, TAL has expanded its Health Sense Plus program to encompass income protection policies. This initiative allows advisers to offer clients enhanced value through a straightforward preventative health engagement. - read more
The Australian Prudential Regulation Authority (APRA) has expressed concerns regarding the sustainability of income protection insurance, following significant losses within the industry. Over a five-year period, insurers have reported losses totaling $2.5 billion on this product. - read more
HCF Life, part of Australia's largest not-for-profit health fund, has been honored with the 'Best for Income Protection Insurance (Direct)' award by WeMoney for the third consecutive year. This accolade underscores HCF Life's commitment to providing competitive and customer-focused insurance products. - read more
In a notable development for Australian businesses, commercial insurance rates have experienced a significant decline. According to Marsh's Global Insurance Market Index, the Australia-Pacific market saw an 8% drop in commercial rates during the fourth quarter of 2024, marking the most substantial decrease globally. - read more
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.
Web design and construction by:
Clark Family Pty Ltd
A.C.N. 010 281 008 Copyright 2004 - all
rights reserved
