IAG CEO Predicts Ongoing Insurance Premium Rises Amid Easing Inflation
Understanding the Factors Behind the Anticipated Premium Increases
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.
Australians should brace for continued increases in insurance premiums, albeit at a moderated pace, according to Nick Hawkins, CEO of Insurance Australia Group (IAG).
The company recently reported a significant 91% rise in net profit for the first half of the fiscal year ending December 31, 2024, reaching $778 million.
This surge is largely attributed to favourable weather conditions and a reduction in claims.
Hawkins highlighted that while inflationary pressures are easing, they have previously led to substantial cost increases across various sectors, including insurance. He noted that the cost of reinsurance has "dramatically changed" and would continue to influence premium rates, though future increases are expected to align more closely with general inflation trends. ([abc.net.au](https://www.abc.net.au/news/2025-02-14/iag-ceo-nick-hawkins-warns-of-further-premium-increases/104931074?utm_source=openai))
The Australian Bureau of Statistics reported an 11% rise in insurance prices over the year to December, down from a peak of 16.4% annual inflation in March of the previous year. This indicates a gradual stabilization in premium growth rates. ([abc.net.au](https://www.abc.net.au/news/2025-02-14/iag-ceo-nick-hawkins-warns-of-further-premium-increases/104931074?utm_source=openai))
Hawkins also emphasized the growing impact of climate change on the insurance industry. He pointed out that increased frequency and severity of weather events are contributing to higher claims and, consequently, rising premiums. IAG is actively focusing on understanding and mitigating these climate-related risks to better serve its customers. ([abc.net.au](https://www.abc.net.au/news/2025-02-14/iag-ceo-nick-hawkins-warns-of-further-premium-increases/104931074?utm_source=openai))
For small to medium business owners, self-employed professionals, and high-income freelancers, these developments underscore the importance of regularly reviewing insurance policies. Ensuring adequate coverage in the face of evolving risks and potential premium adjustments is crucial. Engaging with insurance providers to understand the factors influencing premium changes can aid in making informed decisions about coverage options.
Published:Wednesday, 4th Feb 2026 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The Australian Financial Complaints Authority (AFCA) has recently ruled against Zurich Insurance, instructing the insurer to maintain the current income protection benefits for a policyholder after an 11-year delay in proposing a reduction. This decision underscores the critical importance of timely and transparent communication between insurers and their clients. - read more
In the 2025 Life Insurance Awards presented by Money Magazine, Neos has been honored as the top provider in the Income Protection Insurance category. This accolade reflects Neos's commitment to delivering comprehensive and reliable income protection solutions to Australians. - read more
Marina operators in Northern Australia are confronting a significant crisis as insurance premiums escalate dramatically, with some experiencing increases exceeding 300% over recent years. This surge in costs is placing immense financial strain on the industry, prompting urgent calls for government intervention. - read more
As global trade dynamics undergo significant shifts, GT Insurance is reaffirming its commitment to supporting marine clients navigating these challenges. The recent imposition of US tariffs-25% on Australian steel and aluminium, and 10% on other exported goods-has introduced new uncertainties for local exporters, particularly in sectors like beef and bulk freight. These tariffs, effective from April 5, 2025, have prompted concerns about declining export volumes and reduced freight margins. - 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
