The insurance industry in Australia, including motor vehicle coverage, is expected to see four more solid years of revenue growth.
Motor insurance, the third leading line of business in Australia’s general insurance industry, accounts for a quarter of $103 billion in premiums predicted for 2025 by Global Data.
It also noted that driven by a rise in vehicle sales, motor insurance recorded a growth of 12.6 per cent in 2024.
Global data also predicted this number to continue to grow at a compound growth rate of 12.7 per cent during 2025-29.
How this will translate into claims paid and the revenue channelled into the collision repair industry remains to be seen.
The overall Australian general insurance industry is set to grow at a compound annual growth rate of 9.2 per cent from $103.1 billion in 2025 to $146.9 billion in 2029, in terms of direct written premiums (DWP), the a leading data and analytics company forecast
GlobalData’s Insurance Database shows Australia’s general insurance industry is expected to grow by 8.9 per cent next year, supported by rise in vehicle sales, growing demand for policies covering extreme weather events, and increasing premium prices across general insurance lines due to high inflation.
Marine, aviation, transit (MAT), liability, financial lines and other general insurance lines are estimated to contribute for the remaining 14.4 per cnet of premiums share in 2024.
“The Australian general insurance industry is set to experience consistently high growth over the next five years,” GlobalData Senior Insurance Analyst Sneha Verma says.
“However, increasing claim payouts due to rising inflation and an increase in losses due to frequent nat-cat events will remain a significant challenge for general insurers.”