What’s happening in the Australian insurance market?
What’s happening in the Australian insurance market? | Insurance Business Australia
Life & Health
What’s happening in the Australian insurance market?
Reports cover major insurance markets
Life & Health
By
Roxanne Libatique
The Australian Prudential Regulation Authority (APRA) has published its quarterly insurance data for the June 2024 period.
The reports provide updated information on the performance of the general, life, and private health insurance sectors.
Australian general insurance performance
APRA’s latest figures for the general insurance sector reveal overall growth in key metrics.
The insurance service result improved significantly, climbing to $2.2 billion, mainly due to gains in short-tail property insurance, which rose to a profit of $1.1 billion from a loss of $605 million in the December quarter.
The allocation of reinsurance premiums was $4.1 billion in June, a slight decrease from previous quarters. Amounts recoverable from reinsurers grew to $2.1 billion, returning to December 2023 levels.
Overall, the sector saw profits after tax increase to $1.6 billion, up from $1.4 billion in the March 2024 quarter. The total number of insurers stood at 89 by the end of June, following a slight decrease in earlier quarters.
APRA has released the latest figures for the Australian general insurance sector amid the General Insurance Code of Practice review.
Chaired by former APRA deputy chair Helen Rowell, the panel has received 23 submissions from insurers, consumer advocates, and regulators. Key areas of focus include protections for small businesses and vulnerable consumers, particularly following natural disasters.
The panel’s second consultation paper is expected by the end of 2024, with final recommendations to follow after further industry engagement.
Australian life insurance sector performance
APRA’s life insurance data for June 2024 highlighted mixed results for the sector.
Investment returns declined significantly, dropping from $1.9 billion in December 2023 to $297 million in the June quarter.
APRA has released the latest figures for the Australian life insurance sector following its life insurance CEO roundtable in July 2024, focusing on the ongoing challenge of managing longevity risk. The roundtable also explored potential product innovations, including “soft default” options that could help retirees better navigate their savings decisions.
Insurance revenue totalled $7.7 billion, while the insurance service result dropped sharply to $109 million from $632 million in March 2024.
The sector’s prescribed capital amount coverage ratio held steady at 2.62, with the number of insurers unchanged at 30.
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