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Insurance companies have collectively deposited $ 6.1 billion in annual profits after increasing premiums and face less significant climatic events.
The Australian insurance industry registered an annual gain after taxes of $ 6.1 billion in 2024, according to the annual review of the KPMG financial consulting firm of the sector.
That is three times greater than the average of five years of $ 2 billion.
There were no climate catastrophes in 2024 and only two important events: Valentine’s Day storms in Victoria and severe climate in NSW and Queensland in April.
Insurance companies had $ 566 million in losses of 49,000 claims, well below the $ 2,356 billion paid in 143,900 claims of catastrophes and significant events in 2023.
2024 A ‘Benign Meteorological Year’
KPMG Assurance and Risk’s partner Scott Gusta, said 2024 was a benign meteorological year for insurers.
“We probably remember the massive storms of Christmas Day that passed through Gold Coast and Hinterland in December 2023 and we all remember the most recent Cyclone Alfred in February and March this year,” he told AAP.
“They were not trapped in this particular year we are seeing.
“These are those catastrophic weather events that lead or make the result of insurance.”
As such, the insurance -related profits totaled $ 3.1 billion, with the other $ 3 billion from investment income, they also triple the average of five years.
“That should not be surprising to the public because most of us saw good investment yields for our retirement funds in 2024,” Guse said.
Annual premium revenues increased from $ 65.5 billion to $ 68 billion from 2023 to 2024.
The average customer paid 19.3 percent more for housing insurance coverage ($ 1277 above $ 1070) and 12 percent more for car insurance coverage ($ 845 above $ 945).
The return to positive profits was a sign that the two -digit premium walks were behind customers, Guse said.
“We need our insurers to be viable and survive, and do so for profits,” he said.
“Because they were making losses, they need to increase price increases.
“But in addition to that we saw, through Covid, supply chain problems, price inflation, the cost of builders up.”
Insurers continue to face pressure due to the growing frequency, gravity and longevity of natural disasters, including floods, forest fires and cyclones.
Guse said it was impossible to know what was around the corner in the midst of climate change.
“We always know that it is a bad season from October to May and we have not through that season so far,” he said.
“The profits that were obtained last year could be eroded to a large extent if we have a bad year.”
Without more intervention, the report warned that the premium’s costs would continue to increase in high -risk areas and make insurance unacordable for many clients.
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