Home and Contents Insurance in Australia - Industry Market Research Report

Uncovered: Households are reconsidering their coverage as cost-of-living pressures build

The Home and Contents Insurance industry's revenue has continued to climb in the face of hefty claims expenses and consumer budget pressures. The high number of expensive claims arising from floods, cyclones and bushfires has slimmed industry profitability. Natural disasters' high frequency and magnitude have also stoked demand for home and contents risk coverage. Insurers have raised premiums to tap into this demand, cope with higher claims risks and save their profit margins. A higher-than-average number of claims and higher claim values have led insurers to raise premiums to maintain profitability. Home and Contents Insurance revenue jumped at an annualised 2.1% over the five years through 2022-23 to reach an anticipated $11.1 billion. This trend includes a 1.6% dip expected in revenue this year as households limit spending and natural disaster frequency drops from a recent spike. Investment revenue streams are also in the spotlight, as insurers have struggled to generate consistent returns in the wake of the COVID-19 pandemic and other economic disruptions. Industry providers underwrite home and contents insurance policies that protect against loss or damage to property due to theft, fire and other causes. Home and Contents Insurance is a type of general insurance. Policies that are underwritten by insurers also protect against personal liability that may arise from injury on an insured person’s property. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.