Income Insurance Online :: News
SHARE

Share this news item!

Amid Surging Profits, The Insurance Sector Faces Public Perception Hurdles

Amid Surging Profits, The Insurance Sector Faces Public Perception Hurdles

Amid Surging Profits, The Insurance Sector Faces Public Perception Hurdles?w=400
The general insurance industry's after-tax profits rose significantly to $7.3 billion last financial year, marking its strongest performance in over a decade, according to actuarial group Taylor Fry.
This impressive outcome was driven by lower-than-expected losses from catastrophes and robust investment returns.
The previous year's figures, limited by accounting changes affecting data availability, saw comparable profits for nine months rising by 33% to $5.2 billion.

With the latest release of its annual Radar report, Taylor Fry anticipates that the surge in earnings will prompt heightened scrutiny on pricing practices and fairness in the industry, especially as consumers feel the pinch of affordability pressures. Principal Scott Duncan emphasises that examining insurance through a one-year lens is insufficient, given the industry's inherent volatility and the unpredictable nature of catastrophe experiences and investment returns.

Scott Duncan elaborates that insurance functions as an economic shock absorber, stabilising households and the broader economy. Taylor Fry's extended analysis of share prices indicates that the sector's performance aligns with the broader market over the past decade due to its risk absorption capacity.

Primary insurers reported a $6.7 billion profit last financial year, buoyed by previous premium hikes and reserve releases. The reinsurance sector also demonstrated resilience with earnings of $600,000, even as the market softened.

The household insurance line achieved its best service result in over a decade at $1.16 billion, despite a decline in risks written as consumers shift towards higher excesses to manage costs. The domestic motor sector thrived thanks to favourable claim results, overshadowing the concerns about supply chains not translating into increased claim volumes.

Meanwhile, the commercial property market is on a downturn, and the renewable energy shift is spotlighting risks associated with lithium-ion battery fires and solar panel hail damage. The rise in artificial intelligence adoption is another focal point as insurers aim for more efficient customer outcomes. The industry is now turning its attention to AI governance, data security, and cyber risk management.

Published:Thursday, 2nd Oct 2025
Source: Paige Estritori

Share this news item:

Insurance News

NSW and SA Initiate Trials for Increased Mass Limits on Zero-Emissions Trucks
NSW and SA Initiate Trials for Increased Mass Limits on Zero-Emissions Trucks
13 Oct 2025: Paige Estritori
In a significant move towards sustainable transport, New South Wales (NSW) and South Australia (SA) have commenced trials permitting higher mass limits for zero-emissions trucks. This initiative aims to encourage the adoption of environmentally friendly heavy vehicles by addressing existing regulatory constraints. - read more
Austroads Survey Uncovers Safety Concerns with Overseas Licensed Heavy Vehicle Drivers
Austroads Survey Uncovers Safety Concerns with Overseas Licensed Heavy Vehicle Drivers
13 Oct 2025: Paige Estritori
A recent survey conducted by Austroads has brought to light significant safety concerns regarding overseas licensed heavy vehicle drivers operating in Australia. With over 1,900 respondents, the survey aims to inform potential policy changes to enhance road safety and driver competency. - read more
ICA Advocates for Government Reforms to Mitigate Rising Motor Insurance Premiums
ICA Advocates for Government Reforms to Mitigate Rising Motor Insurance Premiums
13 Oct 2025: Paige Estritori
The Insurance Council of Australia (ICA) has issued a call for urgent government action to address the escalating costs of motor insurance premiums. Highlighting a 42% increase in comprehensive motor insurance premiums since 2019, the ICA attributes this surge to various systemic cost drivers. - read more
Suncorp's Earnings Surge and Share Buyback Announcement
Suncorp's Earnings Surge and Share Buyback Announcement
13 Oct 2025: Paige Estritori
Suncorp, a prominent Australian insurer, has reported an 8% increase in full-year cash earnings, reaching A$1.49 billion for the year ending June 30, 2025. This performance exceeded analyst expectations and underscores the company's robust financial health. - read more
ASIC's Legal Action Against RACQ Insurance: What You Need to Know
ASIC's Legal Action Against RACQ Insurance: What You Need to Know
13 Oct 2025: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has commenced Federal Court proceedings against RACQ Insurance, alleging that the insurer misled more than 570,000 customers through deceptive premium comparison figures in renewal notices issued between September 2019 and December 2024. - read more
Click for more Insurance News


Life Insurance Articles

From Illness to Injury: Understanding the Scope of Income Protection Insurance
From Illness to Injury: Understanding the Scope of Income Protection Insurance
In the uncertain times we face today, where both health and economic climates are unpredictable, safeguarding your financial stability becomes paramount. This is where income protection insurance steps in as an essential safety net. For many Australian families, it's the buffer that ensures life's financial commitments are met, even when ability to work is compromised. - read more
Navigating Pre-existing Conditions in Income Protection Insurance
Navigating Pre-existing Conditions in Income Protection Insurance
Income protection insurance is a safeguard that provides individuals with financial stability in the event they are unable to work due to illness or injury. This type of insurance typically replaces a significant percentage of the insured's income, ensuring that their financial commitments can still be met during periods when they cannot earn an income through employment. - read more
How to Avoid Common Mistakes When Filing an Insurance Claim
How to Avoid Common Mistakes When Filing an Insurance Claim
Filing an insurance claim in Australia can be a daunting process, especially if you are not familiar with the necessary steps and requirements. Claiming insurance is crucial when you need financial support, whether due to a natural disaster, accident, or another unexpected event. - read more
Income Protection Insurance: A Lifeline for Freelancers and Contractors
Income Protection Insurance: A Lifeline for Freelancers and Contractors
In today's dynamic gig economy, freelancers and contractors are an essential part of Australia's workforce. Choosing flexibility and autonomy over traditional roles, these professionals enjoy the freedom to manage their schedules and select projects that align closely with their interests. However, this lifestyle brings unique challenges, especially regarding financial security. - read more
Income Protection Insurance Explained: Ensure Your Livelihood in Times of Uncertainty
Income Protection Insurance Explained: Ensure Your Livelihood in Times of Uncertainty
When life takes an unexpected turn, whether due to illness, injury, or other unforeseen events, the financial repercussions can be devastating. This is where income protection insurance becomes an essential component of maintaining financial stability. Income protection insurance acts as a safety net, ensuring that even in times of hardship, your financial obligations can be met, and your standard of living maintained. - read more


Start Here

Monthly Income Benefit:
Postcode:

All quotes are provided free on our secure server and without obligation. We respect your privacy.

Knowledgebase
Term Life Insurance:
A type of life insurance policy that provides coverage for a specified period, such as 10 or 20 years.

Quick Links: | Income Insurance | Income Protection Insurance | Income Insurance For Self-employed | Income Insurance Quotes | Best Income Insurance Australia | Income Insurance For Employees | Income Insurance Comparison | Income Protection For Contractors | Temporary Income Protection | Income Replacement Insurance | Income Protection Policy
This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised Financial Services Representative of Unique Group Broker Services Pty Ltd, Australian Financial Services License 509434. Visit the ASIC website for additional licensing information.
IMPORTANT: We are neither authorised nor licensed to provide finance or financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party intermediaries, insurers and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for vaidating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.