- The annual Allianz Global Insurance Report has revealed Australia’s property and casualty insurance premium continued to grow
- The industry’s strength is projected to continue in 2021 and throughout the next decade
Australia’s general insurance market has held up well in the face of COVID-19, with property & casualty (P&C) insurance premium growing 0.8 per cent in 2020 versus a 2.1 per cent decline in premium globally.
The data – from the annual , which analyses the growth, declines and trends of 61 major insurance markets – further revealed Australia’s market stability is reflective of the state of the nation’s economy. The report found the higher the GDP per capita, the higher gross written premium per capita and as a percentage of GDP; indicating a positive correlation between economic growth and P&C insurance market growth.
According to the Allianz report, local industry growth is expected to continue throughout 2021; again, indicative of Australia’s strong economic recovery following the pandemic’s impact – with Australia’s P&C premium predicted to increase by 3.8 per cent. Yet, most promising, the report has projected the rebound’s momentum to be maintained over the next decade, with premium expected to grow an average of 4.2 per cent per annum (2021-2031). The positive forecast mirrors the global situation, with P&C premium expected to grow 4.2 per cent in 2021, and 4.6 per cent per annum on average over the next decade. Unsurprisingly, Asia (predominantly driven by China) is predicted to lead global growth with P&C premium forecast to grow and average of 6 per cent per annum (including non-consolidated entities with Allianz customers) on average over the decade.
Allianz Australia, Chief Technical Officer, James Fitzpatrick said “The insurance market has proven resilient in the face of the economic impact of the pandemic. This is evident in the industry’s continued growth and strong expected rebound in 2021. Australia’s economy has already bounced back positively; and the report’s findings and projections reflect this broader economic recovery.”
“Australians’ appetite to buy and build homes is being fuelled by the Federal Government’s Homebuilder and New Home Guarantee schemes, which will help drive growth in home and contents premiums. We also expect a growth in motor premiums driven by a recovery in new car sales as pandemic-caused supply chain delays reduce,” he concluded.