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Australian Life Insurance Premiums Set for 1.7% Growth in 2025

Factors Influencing the Projected Increase in Insurance Premiums

Australian Life Insurance Premiums Set for 1.7% Growth in 2025?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.

According to a recent report by Swiss Re, Australia's life insurance market is projected to experience a 1.7% real growth in premiums in 2025.
This anticipated increase is attributed to easing cost-of-living pressures and the repricing of disability income policies.

In 2024, the Australian life insurance sector faced challenges, with premium volumes totaling US$10.36 billion, reflecting a 33.6% decline from the previous year. However, the outlook for 2025 appears more optimistic, with expectations of stabilized incurred claims and elevated investment returns due to higher bond yields.

Swiss Re's Sigma report highlights that while global primary life insurance premium growth is expected to slow to 1% in real terms in 2025, the Australian market's projected growth outpaces this global trend. The report suggests that resilient demand for protection business, rising investment returns, and a return to pre-pandemic mortality rates underpin a positive profitability outlook for the industry.

For policyholders, this projected growth may lead to adjustments in premium rates. It's advisable for individuals to stay informed about potential changes and consult with their insurance providers to understand how these developments might impact their coverage and financial planning.

Published:Thursday, 18th Dec 2025
Source: Paige Estritori

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

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