According to recent analysis by GlobalData, several factors are contributing to this anticipated expansion. A recovering economy, an aging population, and heightened public awareness of health and financial planning are key drivers. Additionally, improved household income and spending are expected to bolster demand for life insurance products.
It's noteworthy that the life insurance sector experienced a significant decrease of 24.4% in GWP in 2024. This decline was primarily attributed to changes in accounting standards following the adoption of IFRS 17. However, the market is poised to rebound, leveraging the aforementioned growth factors.
For real estate professionals, this growth in the life insurance sector presents both opportunities and considerations. As individuals become more attuned to financial planning and risk management, there may be an increased demand for comprehensive insurance solutions, including those tailored for real estate agents and agencies.
Real estate professionals should consider reviewing their own insurance portfolios to ensure they have adequate coverage that aligns with their evolving needs. This includes evaluating policies such as income protection insurance, which can safeguard against income disruption due to illness or accidents—a common concern within the industry.
Furthermore, staying informed about market trends and collaborating with insurance providers to customise policies can enhance risk management strategies. By proactively addressing insurance needs, real estate professionals can ensure they are well-protected in a dynamic economic environment.
In summary, the projected growth of Australia's life insurance market underscores the importance of comprehensive insurance planning. Real estate professionals should seize this opportunity to reassess and optimise their insurance coverage to align with both personal and professional objectives.
