Australia’s insurance industry is projected to decline by 1.3% from AUD115.7bn (US$80.5bn) in 2019 to AUD114.1bn (US$77.5bn) in 2020 due to a challenging business environment and COVID-19.
According to the GlobalData's Global Insurance Database, Australia’s insurance industry is now forecast to grow at a compound annual growth rate of 1.8% during 2019-2024 against the previous estimate of 4.2%.
GlobalData insurance analyst Sangharsan Biswas said the projected recession will be first for Australia in the lajst 30 years.
“Enhanced government spending is expected to moderate the impact of Covid-19 on the economy.
“However, the recovery phase will be a long-drawn one and the insurance business will take time to get back to its pre-Covid growth rates.”