Relief on the horizon? S&P Global forecasts slower rise in insurance premiums for Aussies

Silhouette of a woman with her hands together in thanks, against the backdrop of a cloudy sky.

Great news for Australians managing their budgets, as S&P Global predicts a slowdown in the rise of insurance premiums

After a record-setting 16% increase in insurance premiums over the past year, this could be the relief that Aussies have been needing, albeit a small one.

It’s important to note, however, that this prediction doesn't mean prices will drop. Think of inflation like driving: slowing down doesn’t mean reversing, but rather easing off the accelerator.

Similarly, a slowdown in inflation means prices may continue to rise, just at a gentler pace. And remember, it’s still just a prediction.

Why the change? Inflation and costs are better post-pandemic

The S&P Global report explains that inflationary pressures behind the recent surge in premiums have started to ease.

The report attributes this to stabilised reinsurance costs, more economic stability versus the turbulent post-pandemic period, advances in risk management and regulatory changes.

The report states "As key inflationary pressures ease, insurers will likely respond by moderating premium rate hikes over the course of 2024 and 2025."

Let’s hope they’re right.

What this means for you: finding a cheaper deal?

The forecast from S&P Global could spell some relief for Australians facing steep insurance premium increases. 

Here’s what it could mean for you if the prediction holds true:

  1. Better planning. Steadier costs means more predictability in your budgeting.
  2. Ideal time to shop around. With premiums stabilising, shopping around might uncover better deals as insurers compete more for customers.
  3. Enhanced negotiability. With more stability, insurance companies might be more open to negotiation for things like add-ons or discounts for bundling discounts.

Make sure you stay up-to-date with insurance trends so you can make more informed decisions, and so you’re not caught off-guard when rates rise - as many people were over the past few turbulent years.

If you’re after car insurance, compare some of the attractive options below. Or for home insurance, you can compare policies over at our home insurance section.

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Last updated 16 July 2024Advertiser disclosure
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  • Comprehensive Car Insurance

    Monthly premiums
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    Yes Costs Extra
    Choice of repairer
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    Optional Extra
    Choice of excess
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    $400 - $2,500
    Agreed or market value
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    Agreed Or Market

    Available discounts

    • Comprehensive Car Insurance

      Monthly premiums
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      Yes
      Choice of repairer
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      No
      Choice of excess
      coins icon
      $800 Flat Excess Fee
      Agreed or market value
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      Agreed Or Market

      Available discounts

        Details
      • Gold Comprehensive Car Insurance

        Monthly premiums
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        Yes Costs Extra
        Choice of repairer
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        Optional Extra
        Choice of excess
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        $550 - $1,900 (varies By State)
        Agreed or market value
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        Agreed Or Market

        Available discounts

        • No Claim Discount
        • Online Discount Up To 15%
        Details
      • Comprehensive Car Insurance

        Monthly premiums
        Calendar icon
        Yes Costs Extra
        Choice of repairer
        tools icon
        Optional Extra
        Choice of excess
        coins icon
        $500 - $2,200
        Agreed or market value
        Car coin icon
        Agreed Or Market

        Available discounts

        • Online Discount $75
        Details
      • Seniors Car Insurance

        Monthly premiums
        Calendar icon
        No
        Choice of repairer
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        No
        Choice of excess
        coins icon
        $500 - $2,500 (varies By State)
        Agreed or market value
        Car coin icon
        Agreed

        Available discounts

        • Price Beat Offer Available For Eligible Drivers Over 50 Years Old Switching From A Comparable Policy With The Code ‘SENIORS’. T&Cs Apply.
      • Comprehensive Car Insurance

        Monthly premiums
        Calendar icon
        Yes Costs Extra
        Choice of repairer
        tools icon
        Yes, Optional Extra
        Choice of excess
        coins icon
        $500 - $2,300
        Agreed or market value
        Car coin icon
        Agreed Or Market

        Available discounts

        • Online Discount $80 Off New Online Comprehensive Car Insurance Policies.
        • $10 Monthly Kogan.com Credit For Every Month For Policy Is Active.
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