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IAG CEO Predicts Ongoing Insurance Premium Rises Amid Easing Inflation

Understanding the Factors Behind Future Premium Adjustments

IAG CEO Predicts Ongoing Insurance Premium Rises Amid Easing Inflation?w=400

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Australian consumers should brace for continued increases in insurance premiums, albeit at a moderated pace, according to Nick Hawkins, CEO of Insurance Australia Group (IAG).
The company recently reported a significant 91% rise in net profit for the first half of the fiscal year ending December 31, 2024, reaching $778 million.
This surge is largely attributed to favourable weather conditions and a reduction in claims.

Hawkins highlighted that while inflationary pressures have been a major driver of premium hikes in recent years, there are signs of these pressures abating; they've seen significant inflation on everything, he noted, acknowledging the impact on both insurers and policyholders. However, he expressed optimism about the future, and that he would expect the next six to 12 months to see the inflationary impact of insurance reduce.

Despite this positive outlook, Hawkins cautioned that premiums would continue to rise, though more in line with general inflation rates rather than the steep increases observed previously. This trend is not unique to IAG but is reflective of the broader insurance market in Australia.

For small to medium business owners, self-employed professionals, and high-income freelancers, this development underscores the importance of proactive risk management and regular policy reviews. Understanding the factors influencing premium adjustments can aid in making informed decisions about coverage and budgeting for future expenses.

In light of these anticipated changes, businesses are encouraged to:

  • Regularly assess their insurance needs to ensure adequate coverage.
  • Compare policies from different providers to find the best value.
  • Stay informed about market trends and regulatory changes affecting insurance premiums.

By staying vigilant and informed, businesses can better navigate the evolving insurance landscape and mitigate potential financial risks associated with premium increases.

Published:Thursday, 23rd Oct 2025
Author: Paige Estritori
Sources

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

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