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

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.