Freelancers Insurance Online :: News
SHARE

Share this news item!

Rising Premiums and Record Profits: The Growing Concern Among Australian Policyholders

Balancing Profitability and Affordability in the Insurance Market

Rising Premiums and Record Profits: The Growing Concern Among Australian Policyholders?w=400

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.

Australian consumers are expressing increasing concern over substantial hikes in insurance premiums, especially in light of the industry's record profits.
Reports indicate that some policyholders have experienced premium increases of up to 600%, prompting questions about the fairness and transparency of pricing strategies.

Consumer advocacy groups highlight the lack of clarity in how premiums are calculated, making it challenging for policyholders to understand the reasons behind significant price changes. The complexity of insurers' pricing algorithms, often considered proprietary information, adds to the opacity, leaving consumers in the dark about whether they are receiving fair pricing.

In response to these concerns, there have been calls for independent monitoring of insurance pricing to ensure fairness and prevent potential price gouging. Advocates argue that greater transparency is essential to maintain consumer trust and ensure that insurance remains accessible and affordable.

Insurers, on the other hand, attribute premium increases to factors such as rising costs associated with claims, including higher expenses for building materials and repairs, as well as the need to maintain profitability in a competitive market. They also point to the impact of climate change and the increasing frequency of natural disasters as contributing factors to the rising costs.

As the debate continues, it is crucial for the industry to find a balance between maintaining profitability and ensuring that insurance products remain affordable and transparent for consumers. This balance is essential to uphold the integrity and trustworthiness of the insurance sector in Australia.

Published:Tuesday, 6th Jan 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Australian Insurers Achieve $6.1 Billion Profit in 2024
Australian Insurers Achieve $6.1 Billion Profit in 2024
06 Jan 2026: Paige Estritori
In 2024, Australia's insurance industry reported a significant after-tax profit of $6.1 billion, marking a substantial increase from the five-year average of $2 billion. This surge in profitability is attributed to a combination of premium hikes and a year characterized by fewer severe weather events. - read more
Embracing AI: The Future of Australia's Insurance Industry
Embracing AI: The Future of Australia's Insurance Industry
06 Jan 2026: Paige Estritori
Australian insurance companies are increasingly integrating artificial intelligence (AI) into their operations to enhance efficiency, improve customer service, and strengthen risk management. This digital transformation is driven by the need to remain competitive in a rapidly evolving market. - read more
Rising Premiums and Record Profits: The Growing Concern Among Australian Policyholders
Rising Premiums and Record Profits: The Growing Concern Among Australian Policyholders
06 Jan 2026: Paige Estritori
Australian consumers are expressing increasing concern over substantial hikes in insurance premiums, especially in light of the industry's record profits. Reports indicate that some policyholders have experienced premium increases of up to 600%, prompting questions about the fairness and transparency of pricing strategies. - read more
Australian Insurers Report $1.11 Billion Profit in Q1 2025
Australian Insurers Report $1.11 Billion Profit in Q1 2025
29 Dec 2025: Paige Estritori
The Australian insurance industry has reported a net profit after tax of $1.11 billion for the first quarter of 2025, according to the latest data from the Australian Prudential Regulation Authority (APRA). This figure includes contributions of $990 million from insurers and $123 million from reinsurers. The insurance service result, a key measure of underwriting performance, stood at $1.32 billion for the quarter, complemented by investment returns totaling $1.18 billion. - read more
Australian General Insurance Premiums Set to Surpass $144 Billion by 2029
Australian General Insurance Premiums Set to Surpass $144 Billion by 2029
29 Dec 2025: Paige Estritori
The Australian general insurance industry is on a trajectory to see direct written premiums (DWP) exceed $144 billion by 2029, according to projections from data and analytics firm GlobalData. This anticipated growth is attributed to several key factors, including an increased demand for coverage and a rise in the frequency of natural disasters. - read more


Professionals Insurance Articles

Protecting Your Assets: Essential Insurance for Freelancers
Protecting Your Assets: Essential Insurance for Freelancers
As a freelancer in Australia, your career offers countless benefits such as flexibility and autonomy. However, it also comes with its own set of unique risks that are important to consider. Unlike traditional employees, freelancers often juggle multiple roles and responsibilities, making them susceptible to numerous potential pitfalls. - read more
The Importance of Professional Indemnity Insurance for Freelance Work
The Importance of Professional Indemnity Insurance for Freelance Work
Freelancing has become an increasingly popular career choice in Australia, offering flexibility and the opportunity to work in diverse industries. Many are drawn to freelancing for the independence it provides, allowing them to manage their own time and projects. However, with the freedom of freelance work comes responsibility, particularly when it comes to financial protection. - read more
Understanding Public Liability Insurance: A Freelancer’s Guide
Understanding Public Liability Insurance: A Freelancer’s Guide
As a freelancer in Australia, navigating the complexities of your professional landscape can be both exhilarating and challenging. Among the many considerations that come with this career choice, insurance stands as a critical component for safeguarding your financial wellbeing. - read more
How to Choose the Right Income Protection Insurance as a Freelancer
How to Choose the Right Income Protection Insurance as a Freelancer
Income protection insurance is a type of coverage designed to replace a portion of your income if you're unable to work due to illness or injury. It's an incredibly vital form of insurance for freelancers, who may not have the same safety nets as traditional employees, such as paid sick leave or disability benefits. - read more


Your free insurance quote comparison starts here!
First Name:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Loss Ratio:
The ratio of claims paid by an insurer to the premiums earned, used as a measure of profitability.