--- title: "How much have insurance premiums increased in Australia? ..." description: "Insurance prices rose 5.5% in the year to May 2026 and are now 52.7% higher than at the end of 2019, roughly double the rise in headline inflation. Data from th" lang: en-AU json-ld: | { "@context": "https://schema.org", "@type": "Article", "headline": "How much have insurance premiums increased in Australia?", "description": "Insurance prices rose 5.5% in the year to May 2026 and are now 52.7% higher than at the end of 2019, roughly double the rise in headline inflation. Data from the ABS, APRA, the ACCC and the Department of Health.", "image": [ "https://images.unsplash.com/photo-1637763723578-79a4ca9225f7?q=80&w=871&auto=format&fit=crop&ixlib=rb-4.1.0&ixid=M3wxMjA3fDB8MHxwaG90by1wYWdlfHx8fGVufDB8fHx8fA%3D%3D" ], "datePublished": "2026-07-20T00:00:00+00:00", "dateModified": "2026-07-20T06:37:17.964969+00:00", "author": { "@type": "Organization", "name": "CheckRate" }, "publisher": { "@type": "Organization", "name": "CheckRate" }, "mainEntityOfPage": { "@type": "WebPage", "@id": "https://checkrate.com.au/insurance-premium-increases" } } --- [CheckRate ](/) [Library](/articles) Back Spending # How much have insurance premiums increased in Australia? Insurance prices rose 5.5% in the year to May 2026 and are now 52.7% higher than at the end of 2019, roughly double the rise in headline inflation. Data from the ABS, APRA, the ACCC and the Department of Health. 11 min read 20 July 2026 Updated 20 July 2026 Fact checked In this article 1. [Insurance prices are rising faster than the cost of living](#insurance-prices-are-rising-faster-than-the-cost-of-living) 2. [How insurance premium growth has changed over time](#how-insurance-premium-growth-has-changed-over-time) 3. [How insurance premium indicators differ by policy type](#how-insurance-premium-indicators-differ-by-policy-type) 4. [Why are insurance premiums rising in Australia?](#why-are-insurance-premiums-rising-in-australia) 5. [How insurance premium increases vary across Australian cities and risk areas](#how-insurance-premium-increases-vary-across-australian-cities-and-risk-areas) 6. [What rising premiums mean for Australian household budgets](#what-rising-premiums-mean-for-australian-household-budgets) 7. [Frequently asked questions](#frequently-asked-questions) Key figures ABS · May 2026 5.5% Rise in the ABS Insurance CPI in the year to May 2026, compared with **4.0%** for All groups CPI ABS · since Dec 2019 52.7% Cumulative rise in insurance prices between December 2019 and March 2026, vs **26.0%** for All groups CPI APRA · 2025 $13.9bn Gross home insurance claims in 2025, up **61%** on 2024 and the highest annual total in APRA's current series ISA · Mar 2024 5.2× Home building premium index vs March 2004; contents was **1.7×** its March 2004 level Home insurance claims also rose sharply in 2025. Gross home insurance claims incurred reached $13.9 billion, up 61% on 2024 and the highest annual total in APRA's current reporting series. Claims rose faster than gross accrued premium over the year, although annual claims did not exceed annual premium on the APRA series. [ 8 min read Average insurance cost in Australia in 2026: how much households spend on premiums A breakdown of what households pay across home, motor, health and other cover, and how the total compares with income. Read full article → ](/average-insurance-cost)[ 7 min read Average car insurance cost in Australia in 2026 Motor vehicle premiums have climbed alongside home cover. Here's how much drivers are paying and why. Read full article → ](/average-car-insurance)[ 9 min read Average health insurance cost in Australia in 2026 Private health premiums rose 4.41% in 2026, the largest increase since 2017. What's behind the rise. Read full article → ](/average-health-insurance) Section 01 The headline number ## Insurance prices are rising faster than the cost of living Insurance prices rose 5.5% in the 12 months to May 2026, faster than the 3.2% rise in the broader Insurance and financial services group and the 4.0% rise in All groups CPI over the same period. The ABS says the increase in insurance was driven by higher premiums for motor vehicle, house and home contents insurance. Insurance · May 2026 5.5% Annual movement, ABS monthly Insurance CPI Insurance · Mar 2026 3.7% Annual movement, ABS quarterly Insurance CPI Insurance & fin. services 3.2% May 2026, broader group All groups CPI 4.0% Headline inflation, May 2026 A single month shows the latest annual movement, but the longer quarterly series shows how the increases have built up over time. By March 2026, insurance prices were **76.4%** higher than in December 2015, **52.7%** higher than in December 2019 and **35.4%** higher than in December 2022. Over each of those periods, insurance prices rose faster than All groups CPI. Insurance CPI versus All groups CPI in Australia Cumulative change to March 2026, by starting point Official data - Insurance CPI - All groups CPI On this index measure, a policy that cost $1,000 in December 2019 would have risen to about $1,527 by March 2026, if the policy, risk profile, level of cover and insurer pricing exactly followed the national ABS Insurance CPI. **Source:** ABS Consumer Price Index, Australia, quarterly Table 18 (Insurance) and All Groups series, March 2026 release. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Section 02 Two decades of data ## How insurance premium growth has changed over time Insurance premium growth has varied widely over the past two decades, from annual increases below 1% in some years to **16.3%** in 2023. The ABS quarterly Insurance CPI rose more slowly than All groups CPI in 2013, 2014 and 2019, before lifting more sharply from 2022. The annual increase reached 16.3% in 2023, the strongest December-quarter annual movement in this 2006 to 2025 comparison, and remained high at **11.0%** in 2024. Growth eased to **2.7%** by December 2025, before rising to 3.7% in March 2026 on the quarterly series and 5.5% in May 2026 on the monthly series. Insurance CPI versus headline CPI in Australia, 2006 to 2025 Annual movement, December quarter each year Official data - Insurance - All groups CPI Insurance prices rose faster than All groups CPI in 12 of the 20 years shown. The widest gaps came recently: 12.2 percentage points in 2023 and 8.6 percentage points in 2024. **Source:** ABS Consumer Price Index, Australia, quarterly Table 18 (Insurance) and All Groups series, year-end readings. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) ### Why home building premiums have risen faster than contents premiums Home building premiums were **5.2 times** their March 2004 level by March 2024, while home contents premiums were 1.7 times their March 2004 level. This difference is not visible in the ABS Insurance CPI, which groups house, contents and motor vehicle insurance together. A separate Insurance Statistics Australia domestic insurance index tracks home building and home contents cover from March 2004. Home building versus contents insurance premiums in Australia, 2004 to 2024 Premium index, March 2004 = 100. Toggle for claim size. Figures exclude state and Commonwealth taxes Official data PremiumClaim size - Building - Contents The index shows relative change, not dollar premiums. An index value of 524.6 means the building premium index was 5.2 times its March 2004 level. Average building claim size rose more than 11 times over the period, compared with about 3.2 times for contents claim size. **Source:** Insurance Statistics Australia, via the Insurance Council of Australia's data hub. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Section 03 By insurance type ## How insurance premium indicators differ by policy type Home building cover shows the largest long-run increase in the available index data, while CTP recorded the fastest annual growth in gross written premium among the APRA classes listed below. These figures should not be read as a direct ranking of price increases, because each source measures a different thing. A price index, a gross written premium figure and an average approved private health premium increase are not directly comparable. The table therefore labels each figure by metric. Latest insurance premium readings by type in Australia By insurance class, latest published figure for each metric Official data Type Metric Latest figure Home building Price index 5.2× March 2004 level Home contents Price index 1.7× March 2004 level CTP (compulsory third party) Gross written premium +10.5% to $1.06bn Home (householders) Gross written premium +6.1% to $4.25bn Domestic motor Gross written premium +5.9% to $4.83bn Private health Average approved increase +4.41% from 1 Apr 2026 Travel Gross written premium −0.2% to $406m **Source:** APRA Quarterly General Insurance Performance Statistics, March 2026 release; Insurance Statistics Australia; Department of Health, Disability and Ageing. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Why these figures are not directly comparable A price index tracks the cost of a fixed category of cover over time. Gross written premium tracks the total premium written by insurers in that class, which can change because of price movements, policy numbers, sums insured or changes in the mix of policies. The private health figure is an industry-average approved premium increase, not a price index and not a single rate applied to every policy. Within those limits, the APRA data show CTP had the fastest annual growth in gross written premium among the listed general insurance classes, up **10.5%** in the year to the March 2026 quarter. Home insurance gross written premium rose 6.1%, domestic motor rose 5.9%, and travel was broadly flat, down 0.2%. Private health insurance premium increases have also lifted. The industry-average approved increase was 3.73% in 2025 and **4.41%** in 2026, the largest average approved increase since 2017. Private health insurance premium round in Australia, 2019 to 2026 Industry-average approved annual increase Official data **Source:** Department of Health, Disability and Ageing, average annual price changes in private health insurance premiums. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Section 04 What's driving it ## Why are insurance premiums rising in Australia? Gross claims incurred for home insurance reached **$13.9 billion** in 2025, up 61% on 2024 and the highest annual total in APRA's current reporting series. Gross accrued premium also rose over the year, but by much less than claims. The heaviest quarters were March and December 2025. The March quarter included widespread flooding and wind damage associated with ex-Tropical Cyclone Alfred across south-east Queensland and northern New South Wales, while total gross home insurance claims incurred reached **$4.70 billion** for the quarter. The December quarter was the largest quarter in APRA's current series, at **$5.45 billion**, including $3.47 billion in Queensland. Gross claims incurred versus gross accrued premium for home insurance in Australia Home insurance class, $ per quarter, Q3 2010 to Q1 2026 Official data - Gross accrued premium - Gross claims incurred APRA moved to a new reporting framework from 1 July 2023, marked by the shaded gap. APRA states that data under the new framework are not directly comparable with earlier figures. Values are nominal. **Source:** APRA Quarterly General Insurance Performance Statistics. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Gross claims versus net claims Gross claims incurred is the cost of claims insurers recognised before reinsurance and other recoveries. Net claims incurred is the claims cost reported after recoveries and other accounting adjustments. In 2025, APRA reported $13.9 billion in gross claims incurred and $8.94 billion in net claims incurred for home insurance. Net claims were 36.2% higher than in 2024, but rose less sharply than gross claims. The March 2026 quarter showed lower claims pressure than the December 2025 peak, but gross accrued premium continued to rise. Gross claims incurred eased to **$3.25 billion**, down 40% from December 2025. Calculated from APRA's gross claims incurred and gross accrued premium data, claims were equal to **76.3%** of gross accrued premium in March 2026, compared with 125.9% in December 2025. Gross accrued premium was still 7.7% higher than a year earlier. The figures show that premium revenue continued to increase after the December claims peak. APRA data do not show how insurers set individual premiums, but the pattern is consistent with premiums reflecting broader claims experience rather than one quarter of claims. Several factors can contribute to higher premiums: - Reinsurance costs, which are part of the cost insurers face when they buy protection against large events - Building material and labour costs, which can affect repair and rebuild costs - Extreme weather events, which can increase the number and size of claims in affected periods The ACCC has identified reinsurance as a significant cost component of premiums for cyclone-exposed policies. In the rest of Australia, inflation-adjusted reinsurance costs for home and contents insurance rose from about $3.4 billion in 2022–23 to about $4.0 billion in 2023–24, before falling by 6% in 2024–25. Section 05 By location ## How insurance premium increases vary across Australian cities and risk areas Adelaide recorded the fastest rise in insurance prices of any capital city in the year to May 2026, at **6.9%**. It was followed by Brisbane at 6.5%, Hobart at 6.3%, Melbourne at 6.1%, Sydney at 5.9%, Darwin at 5.3% and Canberra at 3.8%. Perth recorded the slowest increase, at **1.5%**. Insurance CPI annual movement by capital city Annual movement, May 2026 Official data Adelaide's 6.9% reading was the fastest annual movement of any capital city in this release. **Source:** ABS Consumer Price Index, Australia, capital city annual percentage change table, May 2026 release. ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) ### Cyclone risk creates a sharper split in home insurance premiums The ACCC's final cyclone reinsurance pool report found that premium changes differed by cyclone risk. For combined home and contents insurance, average premiums per $100,000 sum insured were: - **11% lower** in medium-to-high cyclone-risk areas in the first year after insurers entered the pool - **3% higher** in low cyclone-risk areas - **6% higher** in nil cyclone-risk areas The ACCC also found that the reduction in medium-to-high cyclone-risk areas was sustained into the second year after pool entry: average home and contents premiums per $100,000 sum insured were **14% lower** than pre-pool premiums in medium-to-high cyclone-risk areas, compared with increases of 4% in low-risk areas and 8% in nil-risk areas. 45% **Share of ACCC survey respondents** who rated their home insurance as unaffordable or barely affordable, including households inside and outside cyclone-risk areas. Average combined home and contents premiums remained highest in northern Australia in 2024–25. The ACCC reported average premiums of **$4,966** in north Western Australia, **$3,546** in the Northern Territory, **$3,117** in north Queensland and **$2,310** for the rest of Australia. Some cyclone-exposed cities also recorded lower premiums after insurers entered the pool: Karratha down 15%, Mackay down 14% and Cairns down 12%. Interactive state selector: claims pressure and typical local price band Select any state or territory Official data NSWVICQLDSAWATASNTACT New South Wales Two Sydney SA3s reach the $5,000+ band Industry · Q1 2026 Claims as a share of quarterly revenue 35.7% Claims $512m Revenue $1,435m Quarterly, home insurance class Local range · ACCC 2025 Typical SA3 band $2,500 to $3,750 Median SA3 band for the state A ratio above 100% means claims incurred exceeded revenue that quarter. Only the **Northern Territory** crossed that line in Q1 2026. Share of local home insurance price bands (SA3s) by state in Australia, 2025 ACCC 2025 average home and contents premium bands per SA3 Official data $1,250–2,500 $2,500–3,750 $3,750–5,000 $5,000–6,250 $6,250+ NSW 17% 71% 10% 89 SA3s VIC 65% 32% 66 SA3s QLD 77% 15% 81 SA3s SA 79% 21% 28 SA3s WA 73% 12% 34 SA3s TAS 87% 13% 15 SA3s NT 56% 22% 22% 9 SA3s ACT 50% 50% 8 SA3s A "local area" is an ABS Statistical Area Level 3, or SA3. Price bands are based on ACCC 2025 average home and contents premium data by SA3. **Source:** ACCC Insurance Monitoring Report 2026, SA3-level premium analysis (2025 premium data). ![CheckRate](/__l5e/assets-v1/7bc4597d-01a6-41ce-b2ee-e3271c8e8b60/checkrate-logo.png) Section 06 Household budgets ## What rising premiums mean for Australian household budgets Australian households spent an average of **$79.74 a week** on insurance in 2015–16, according to the ABS Household Expenditure Survey. This is the latest direct national household spending survey for this category, so it should not be read as a current 2026 dollar estimate. Based on the spending measure used in the ABS detailed expenditure data, insurance accounted for about **5.2%** of weekly household spending in 2015–16. Since insurance prices have risen substantially since then, the 2015–16 dollar amount is likely to understate current spending. However, the official data do not show the average household insurance bill in 2026. Highest weekly spend, 2015–16 $86.81 Australian Capital Territory. Tasmania was lowest, at $67.04. Highest budget share, 2015–16 About 5.6% South Australia, followed by Tasmania (about 5.5%) and Queensland (about 5.4%). ### What survey data show about insurance gaps A 2025 Australia Institute survey of 2,009 Australians found that some homeowners reported gaps in building or contents cover. Among respondents who owned their home outright or had a mortgage, **15%** said their house was underinsured and **4%** said it was uninsured. For contents cover, **19%** said their contents were underinsured and **10%** said they were uninsured. 19% in the gap Home building insurance gaps in Australia Fully insured 78% Underinsured 15% Uninsured 4% 29% in the gap Home contents insurance gaps in Australia Fully insured 68% Underinsured 19% Uninsured 10% How renters appear in the insurance data Most home building insurance figures relate to owners or landlords, because building cover is usually attached to the property. Contents insurance is separate and can apply to belongings inside rented homes, including share houses and student accommodation. Because of this, premium figures for owners, landlords and renters should not be read as interchangeable unless a source explicitly combines them. FAQ Common questions ## Frequently asked questions How much has home insurance gone up in Australia? Home building premiums were 5.2 times their March 2004 level by March 2024, while home contents premiums were 1.7 times their March 2004 level. More broadly, the ABS Insurance CPI, which includes motor vehicle, house and contents insurance, was 52.7% higher in March 2026 than in December 2019. Why is insurance rising faster than headline inflation? Which areas have the highest home insurance premiums? Is the cyclone reinsurance pool reducing premiums? Do renters appear in home insurance premium data? General information only This article is a statistical reference based on publicly available insurance price, premium, claims and survey data. Figures are reported at a national, state, regional or category level and do not show the premium paid by any individual policyholder. Insurance costs vary by location, property type, sum insured, cover level, excess, claims history, insurer, risk rating and policy terms. This article does not constitute financial advice, insurance advice or a recommendation about any insurance product. ## References 1. 1 [**Australian Bureau of Statistics**](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release): Consumer Price Index, Australia, monthly release, May 2026, incl. capital city detail (Table 11). 2. 2 [**Australian Bureau of Statistics**](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/mar-2026): Consumer Price Index, Australia, quarterly release, March 2026, incl. the Table 18 Insurance time series. 3. 3 [**Australian Bureau of Statistics**](https://www.abs.gov.au/statistics/economy/finance/household-expenditure-survey-australia-summary-results/latest-release): Household Expenditure Survey, Australia: Summary of Results, 2015–16. 4. 4 [**Australian Prudential Regulation Authority**](https://www.apra.gov.au/news-and-publications/quarterly-general-insurance-performance-statistics): Quarterly General Insurance Performance Statistics, March 2026 release, incl. class-of-business and state-level data. 5. 5 [**Department of Health, Disability and Ageing**](https://www.health.gov.au/resources/publications/average-annual-price-changes-in-private-health-insurance-premiums?language=en): Average annual price changes in private health insurance premiums, 1997 to 2026. 6. 6 [**Australian Competition and Consumer Commission**](https://www.accc.gov.au/about-us/publications/serial-publications/insurance-monitoring-reports/accc-insurance-monitoring-report-2026): Insurance Monitoring Report 2026, the fifth and final report under the cyclone reinsurance pool direction, published 25 June 2026. 7. 7 [**Insurance Council of Australia / Insurance Statistics Australia**](https://insurancecouncil.com.au/industry-members/data-hub/): quarterly home building and contents insurance index, via the data hub, March 2004 to March 2024. 8. 8 [**The Australia Institute**](https://australiainstitute.org.au/report/polling-home-contents-insurance/): home and contents insurance polling, 2025 survey of 2,009 Australians who own outright or have a mortgage. ## Data Snapshots ![insurance cpi versus all groups cpi in australia](https://eznpqfufanyahmlyjhnj.supabase.co/storage/v1/object/public/article-covers/snapshots/03e517d2-481e-4723-8c56-1d8b1b238848/insurance-cpi-versus-all-groups-cpi-in-australia-jcwi.jpg) Insurance cpi versus all groups cpi in australia ![insurance cpi versus headline cpi in australia 2006 to 2025](https://eznpqfufanyahmlyjhnj.supabase.co/storage/v1/object/public/article-covers/snapshots/03e517d2-481e-4723-8c56-1d8b1b238848/insurance-cpi-versus-headline-cpi-in-australia-2006-to-2025-4ze1.jpg) Insurance cpi versus headline cpi in australia 2006 to 2025 ## Related research [ ![Average insurance cost in Australia in 2026](https://images.unsplash.com/photo-1450101499163-c8848c66ca85?auto=format&fit=crop&w=2000&q=80) Spending 17 July 2026 · 12 min read ### Average insurance cost in Australia in 2026 Australian households paid an average of $16.74 a week for house and contents insurance and $38.56 a week for accident and health insurance in the ABS's 2015–16 Household Expenditure Survey. 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