Home and Contents Insurance in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: April 2024
ANZSIC OD4153Revenue
$15.8bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
15,507
Businesses
81
Wages
$X.Xbn
Home and Contents Insurance in Australia industry analysis
The Home and Contents Insurance industry's revenue has continued to climb in response to skyrocketing premiums. A considerable number of expensive claims arising from floods, cyclones and bushfires has incentivised insurers to re-analyse their premium prices and move quickly to pass on their risk costs. Natural disasters' high frequency and magnitude in recent years have also stoked demand for home and contents risk coverage, despite the burden of higher premiums on policyholders’ budgets. A higher-than-average number of claims and pricier claim values have led insurers to raise premiums to maintain profitability. Home and contents insurance revenue jumped at an annualised 7.0% over the five years through 2023-24 to reach an anticipated $15.8 billion. This trend includes a 14.7% leap in revenue expected this year on the back of returns from heightened premiums. Investment revenue streams are also in the spotlight, as insurers have begun to generate consistent returns in the wake of the COVID-19 pandemic and smoothing supply chain disruptions.
Trends and Insights
- Heightened premiums have been a windfall for major insurers. Rising claims expenses have forced insurers to raise premiums, with larger insurers greatly benefitting from the revenue boost.
- Renter numbers are growing, but many are having to make tougher budget decisions. Home and contents insurance providers run the risk of seeming like a low priority for renters struggling with cost-of-living pressures.
- Metropolitan areas are well suited to home and contents insurance offices. Being close to high-skill talent streams and neighbouring financial institutions makes business processes more efficient.
- Home and contents insurers struggle to compete on price. Comparison sites have maximised price competition given the similar product coverage. Industry providers instead differentiate their prices by customising their offerings based on house locations and more specific factors.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 7.0 % over the past five years, to reach an estimated $15.8bn in 2024.
Trends and Insights
Insurers have increased premiums to cope with rising costs
- High claim costs and reinsurance policies’ rising importance have made reinsurers increase their premiums, a cost that home and contents insurers have had to pass on to customers.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Insurers will consider the pros and cons of newly established online services
- Home and contents insurers will keep looking into online channels for policy sales and marketing payoffs.
Biggest companies in the Home and Contents Insurance in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
QBE Insurance | 3,598.4 | |
IAG | 3,442.0 | |
Suncorp | 3,010.0 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Strata insurance, Disaster insurance and Contents insurance. Strata insurance is the largest segment of the Home and Contents Insurance in Australia.
Trends and Insights
Disaster insurance has dominated the industry over the past few years
- Disaster insurance policies cover storms, floods, bushfires and other natural events. These policies are targeted at consumers in specific disaster-prone areas, like parts of Queensland and New South Wales.
- More insights available in the full report
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Competitors
- There are no industries to display.
Complementors
- Life Insurance in Australia
- Health Insurance in Australia
- General Insurance in Australia
- Insurance Brokerage in Australia
International industries
- Global Direct General Insurance Carriers
- Homeowners' Insurance in the US
- Property, Casualty and Direct Insurance in Canada
- General Insurance in New Zealand
- Home Insurance in the UK
Table of Contents
About this industry
Industry definition
Industry providers underwrite home and contents insurance policies that protect against loss or damage to property due to theft, fire and other causes. Home and Contents Insurance is a type of general insurance. Policies that are underwritten by insurers also protect against personal liability that may arise from injury on an insured person’s property.
What's included in this industry?
Contents insuranceDisaster insuranceStrata insuranceLiability insuranceCompanies
QBE InsuranceIAGSuncorpPurchase this report to view all 5 major companies in this industry.
Related Terms
COVERAGEUNDERWRITINGREINSURANCEIndustry Code
ANZSIC 6322 - Home and Contents Insurance in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Heightened premiums have been a windfall for major insurers. Rising claims expenses have forced insurers to raise premiums, with larger insurers greatly benefitting from the ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Renter numbers are growing, but many are having to make tougher budget decisions. Home and contents insurance providers run the risk of seeming like a low priority for renter...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Metropolitan areas are well suited to home and contents insurance offices. Being close to high-skill talent streams and neighbouring financial institutions makes business pro...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Home and contents insurers struggle to compete on price. Comparison sites have maximised price competition given the similar product coverage. Industry providers instead diff...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major insurers are leaning on their broad reach and brand recognition to capture market share. The larger providers have dominated heated price competition to absorb spiking ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of QBE Insurance's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of IAG's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Suncorp's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for QBE Insurance, and factors influencing its performance in the industry
- Description and key data for IAG, and factors influencing its performance in the industry
- Description and key data for Suncorp, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Insurance Act 1973 lays out the insurance regulation and compliance benchmarks. Regulated by APRA, insurers must meet the requirements to become an approved insurance pro...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Home and contents insurer costs are unpredictable and heavily dependent on natural disasters. Providers use reinsurance policies and heightened premiums to counterbalance the...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Home and Contents Insurance industry in Australia in 2024?
The market size of the Home and Contents Insurance industry in Australia is $15.8bn in 2024.
How many businesses are there in the Home and Contents Insurance in Australia industry in 2024?
There are 81 businesses in the Home and Contents Insurance industry in Australia, which has declined at a CAGR of 2.5 % between 2019 and 2024.
Has the Home and Contents Insurance industry in Australia grown or declined over the past 5 years?
The market size of the Home and Contents Insurance industry in Australia has been growing at a CAGR of 7.0 % between 2019 and 2024.
What is the forecast growth of the Home and Contents Insurance industry in Australia over the next 5 years?
Over the next five years, the Home and Contents Insurance industry in Australia is expected to grow.
What are the biggest companies in the Home and Contents Insurance market in Australia?
The biggest companies operating in the Home and Contents Insurance market in Australia are QBE Insurance, IAG and Suncorp
What does the Home and Contents Insurance in Australia include?
Contents insurance and Disaster insurance are part of the Home and Contents Insurance industry.
Which companies have the highest market share in the Home and Contents Insurance in Australia?
The company holding the most market share in Australia is QBE Insurance.
How competitive is the Home and Contents Insurance industry in Australia?
The level of competition is high and increasing in the Home and Contents Insurance industry in Australia.
