Forecast: Gross Premium Income of Life Insurance in Australia

The gross premium income of life insurance in Australia exhibited significant variability over the past decade. Starting from $45.7 billion in 2013, it peaked at $56.2 billion in 2014 before declining sharply to $43.7 billion in 2015. The subsequent years saw fluctuating figures with a gradual downward trend, dipping to $40.1 billion in 2019. The value further fell to its lowest at $37.81 billion in 2021 but showed modest recovery to $39.7 billion in 2022, before slightly declining again to $39.5 billion in 2023. The five-year CAGR from 2018 to 2023 stands at -0.4%, indicating a marginal decline in the overall income.

Future Trends to Watch For:

• Forecasts predict a continual decline through 2028, with a forecasted 5-year CAGR of -0.31% and an overall growth rate of -1.52% over this period.
• Potential impacts of economic conditions and regulatory changes, especially concerning superannuation and investment-linked products, could influence premium income.
• Technological advancements and demographic shifts, including aging populations, could drive changes in product offerings and customer demand.
• Increased competition from insurtech firms and global insurers entering the market could impact traditional life insurance providers.