Rising insurance premiums in Australia are drawing investor attention to ASX-listed insurers such as QBE Insurance Group and Insurance Australia Group (IAG). According to recent market reports, premium increases across home, motor, and commercial lines are driven by higher reinsurance costs and claims inflation.
QBE, a global insurer headquartered in Sydney, reported a 10% rise in gross written premium for the first quarter of 2026, citing strong rate increases in its North American and Australian operations. IAG, Australia's largest general insurer, also noted premium growth of around 8% in its latest half-year results, supported by higher rates in home and motor insurance.
Analysts suggest that the current hard market cycle, where premiums rise due to limited capacity and higher risk, could persist into 2027. This environment typically benefits insurers by improving underwriting margins and profitability. However, regulatory scrutiny and potential claims from natural disasters remain key risks.
Investors are advised to monitor each company's exposure to catastrophe events and their ability to manage claims costs. Both QBE and IAG have strengthened their reinsurance programs to mitigate volatility.
