3 min read · Updated . Reviewed by James Rock (National Partnerships Director).
On this page 8
- How much have insurance prices risen?
- Which years rose fastest?
- Why are insurance premiums rising?
- How much do natural disasters cost insurers?
- What will natural disasters cost Australia by 2060?
- Does this apply to business equipment insurance?
- What does a fixed premium change?
- Want a premium that stays put for the whole finance term?
How much have insurance prices risen?
| June | Insurance | All prices |
|---|---|---|
| 2021 | 100.0 | 100.0 |
| 2022 | 103.2 | 106.2 |
| 2023 | 117.7 | 112.6 |
| 2024 | 134.2 | 116.9 |
| 2025 | 139.5 | 119.4 |
| 2026 | 147.9 | 124.1 |
| Period to June 2026 | Insurance | All prices |
|---|---|---|
| 1 year | +6.0% | +3.9% |
| 3 years | +25.6% | +10.2% |
| 5 years | +47.9% | +24.1% |
| Since December 2019 | +54.3% | +26.8% |
In the latest monthly figures, insurance rose 5.4% in the 12 months to September 2026, against 4.3% for all prices.
Which years rose fastest?
| Year to June | Insurance prices |
|---|---|
| 2021 | +2.9% |
| 2022 | +3.2% |
| 2023 | +14.1% |
| 2024 | +14.0% |
| 2025 | +3.9% |
| 2026 | +6.0% |
The jump came straight after the 2022 east coast flood, the costliest flood in Australian history. Even after it eased, insurance has kept rising faster than prices in general.
Why are insurance premiums rising?
The Reserve Bank put it plainly in 2023: prices rose “reflecting higher insurance premiums due to increased claims arising from natural disasters”.
The Insurance Council of Australia lists four drivers of insurers’ costs: natural disasters, the increasing value of insured assets, inflation in building and vehicle repair costs, and the rising cost of doing business. The last two hit equipment owners directly: repairs to modern machines cost more, and machines themselves are worth more.
How much do natural disasters cost insurers?
- Since 2019 the Insurance Council has declared 29 extreme weather events, totalling $20.7 billion from more than 760,720 home and building claims.
- Flood losses alone have increased from an average of $129 million a year in the 2000s to around $2 billion a year since 2020.
- In 2025-26, insurers responded to seven declared weather events and two non-weather events, which together generated more than 147,500 claims and $3.98 billion in insured losses, up from three events and about $2.2 billion the year before.
- The February to March 2022 east coast flood was the costliest flood in Australian history.
What will natural disasters cost Australia by 2060?
Natural disasters cost Australia an estimated $38 billion in 2020. Even under a low emissions scenario, that’s forecast to reach $73 billion a year by 2060, and $94 billion a year under a high emissions scenario. The pressure on premiums isn’t going away.
Does this apply to business equipment insurance?
The ABS figures measure insurance bought by households, such as home, contents and car insurance. They don’t measure business equipment insurance separately. But the cost drivers the Insurance Council lists, disasters, asset values and repair costs, are the same ones that sit behind equipment premiums.
APRA’s figures for business lines show 2025-26 was a mixed year, not a uniform rise:
| Premiums written (APRA) | 2024-25 | 2025-26 | Change |
|---|---|---|---|
| Commercial motor | $4.94b | $5.12b | +3.6% |
| Commercial property (fire and ISR) | $9.41b | $9.00b | −4.4% |
| Public and product liability | $3.94b | $3.83b | −2.8% |
| Householders | $16.47b | $17.56b | +6.6% |
These are total premiums written by Australian insurers, so they move with the number of policies as well as with prices. They show where the market is heading, not what any one business pays. The point stands either way: on an annual policy, you find out at every renewal. On a fixed multi-year policy, you don’t have to.
What does a fixed premium change?
An annual policy is re-rated at every renewal, so each of these pressures can show up in your premium every year. A fixed multi-year policy sets the premium on day one for up to five years, and it isn’t affected by claims, inflation or market movements during that term.
A fixed premium isn’t a forecast that annual premiums will keep rising. It gives you a known insurance cost for the life of your finance. Multi-year vs annual cover compared.
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Frequently asked questions
How much have insurance prices risen in Australia?
Insurance prices paid by households rose 47.9% in the five years to June 2026, against 24.1% for all prices (ABS).
Why are insurance premiums rising?
Mainly claims from natural disasters, the rising value of insured assets, and higher building and vehicle repair costs.
How much have natural disasters cost insurers?
Since 2019 the Insurance Council of Australia has declared 29 extreme weather events, totalling $20.7 billion from more than 760,720 home and building claims.
Do these figures cover business insurance?
No. The ABS figures measure household insurance. They show the pressures insurers face, not equipment premiums directly.
Does a fixed premium stop increases?
For the term of the policy, yes. A fixed multi-year premium isn’t affected by claims, inflation or market movements during that term.
Sources
- Australian Bureau of Statistics: Consumer Price Index, insurance (quarterly series to June 2026; monthly release September 2026, published 28 October 2026)
- APRA: Quarterly general insurance performance statistics, September 2023 to June 2026 (published 27 August 2026)
- Reserve Bank of Australia: Statement on Monetary Policy, May 2023 (Inflation)
- Insurance Council of Australia: Catastrophe Resilience Report 2025-26
- Insurance Council of Australia: Insurance Catastrophe Resilience Report 2023-24
- Insurance Council of Australia: 2022 flood now third costliest natural disaster ever
- Australian Business Roundtable for Disaster Resilience & Safer Communities: Special report, update to the economic costs of natural disasters (Deloitte Access Economics, 2021)
- Product information and approved item list from our specialist insurance partner (August 2026)
General information only, not personal advice. Read the policy wording before you buy.
