Australia

Australia Insurance Market Highlights

Market Regulation:

The market is supervised by APRA and ASIC. Axco’s regulatory tracking focuses on the 2026 implementation of the CPS 230 operational risk standard for all regulated entities.

Non-Life Market Trends:

GWP growth is driven by premium hardening in property; Axco’s data indicates that natural catastrophe resilience has become the defining market theme for 2026 underwriting.

Distribution Channels:

Commercial lines are predominantly broker-led; Axco analysis shows that personal lines are dominated by direct-to-consumer brands owned by major banking conglomerates.

Key Risks & Outlook:

Affordability is a major concern; Axco’s risk profiling flags flood and bushfire cover as primary political and economic risks for the Australian sector.

Insurance Companies:

The non-life market is divided between public and private sector insurers. The public sector companies write only public property and liability insurance, builders' warranty and "social" classes such as compulsory third party (CTP) and workers' compensation (WC). Axco Navigator details 76 private sector (re)insurance companies are authorised to write non-life business in Australia, of which 10 are pure reinsurers and 14 are in run-off.

Insurance Statistics:

Axco reports written premiums in 2025 increased by 4.4% to AUD 71,257 Mn with motor the largest class of business, accounting for 39% of premiums. Insurance penetration stands at 2.51%.

Insurance Intelligence

Providing expert analysis, independent market insight and company data on the insurance industry.

Insurance market reports are produced following a country visit with interviews with professionals working in the sector with systematic updates to information throughout the cycle. Covering market developments, macroeconomic factors and comprehensive details of the regulatory environment including relevant taxation as well as market indicators and company statistics.

Axco’s Australia Non-Life Insurance Market Report (P&C) also comprises a detailed analysis of lines of business and sub-classes such as natural hazards, property, construction and machinery breakdown, motor, workers compensation & employers’ liability and liability.

The Life & Benefits Report for Australia includes detail on social security, healthcare, individual life assurance and pensions information as well as market statistics and life company statistics

Key Benefits

• Superior market insights
• Crucial compliance information
• Risk assessment and profitability

What is the Non-Life Insurance market in Australia?

In February 2026, there were 78 private sector (re)insurers authorised to conduct new or renewal general insurance business, of which nine were pure reinsurers. The top four insurance groups control over 60% of the market.

Most business is concentrated in the hands of three listed domestic groups - Insurance Australia Group (IAG), Suncorp and QBE. Lloyd's underwriters are admitted insurers in Australia.

In the Non-Life (P&C) market, AAI Limited was the market leader, recording AUD 9,244.60 million in written premiums and 16.09% market share in 2022. It was followed by Insurance Australia Limited (AUD 8,958.06 million; 15.59% market share) and QBE Insurance (Australia) Limited (AUD 6,995.19 million; 12.17% market share).

Among the leading non-life insurers, Southern Cross Benefits Limited reported the strongest growth. 70 companies are licensed for non-life business.

Who are the top non-life insurers in Australia?

Source: Axco Navigator, Australia Insurance Market Rankings.

What is the Life Insurance market in Australia?

22 registered life companies operate in Australia, as of October 2025, of which six are multinational reinsurers. In addition, there were six non-operating life insurance holding companies licensed under the Life Insurance Act and there were 10 registered friendly societies.

There were 28 registered private health insurers and 54 registrable superannuation entity (RSE) licensees in February 2026, of which the largest was AustralianSuper Pty Ltd, with around 3.42 million members.

In the Life insurance market, TAL Life Limited was the largest insurer in 2022, generating AUD 2,375.32 million in written premiums and holding 21.26% market share. It was followed by AIA Australia Limited (AUD 1,705.16 million; 15.26% market share) and MLC Limited (AUD 1,400.44 million; 12.53% market share).

The fastest-growing major life insurer was Integrity Life Australia Limited, with premium growth of 128.5% year-on-year. 22 companies are licensed for life business.

Who are the top life insurers in Australia?

Source: Axco Navigator, Australia Insurance Market Rankings.

Country Information

Australia is a federation of six states and two territories. Although it is only the ninth-largest non-life market globally, it has a complexity and interest that rivals that of the US as the administration of justice is a state responsibility. Axco reports cover information from all states/territories and the commonwealth government.

Australia has nine workers' compensation systems and eight systems for compulsory motor third party. The country also has a highly evolved common law legal system, massive gas and mining industries and a moderate-to-severe exposure to every natural peril. Australia was a pioneer of risk-based capital and prudential supervision of insurers and is now a front-runner in the field of insurance consumer protection. Although the market is well-penetrated by branches and subsidiaries of multinational insurance groups, more than two-thirds of property and casualty premiums are written by domestic insurance groups.

The Australian life market has been undergoing a period of profound structural change within the past five years driven by regulatory reform, competitive pressure, historically low-interest rates and a changing consumer. A significant feature of the domestic life market is the predominance of yearly renewable term (YRT) contracts, estimated to account for around 80% of in force life insurance policies. Such "stepped premiums" provide the cheapest possible cover at inception and so are easier to sell in intermediary dominated distribution.