Aust vehicle insurance industry to go from $24.1 2024 to $35.1 bil by 2028

Interesting to see the projections of premium growth for vehicle insurance rising so much.

With a tight market in ability to get work done there is plenty of income available to be had for all players in the repair market without cutting each other.

Not sure on what the vehicle repair cost ratio is as a percentage of GWP but I would think 41% wouldn't be too far off the mark for the large insurers.

Not sure what % AMA has of the repair market but if someone knows post so we know.

If we use AMA rev of $894m and the 41% GWP ratio AMA is around 10% $9.9 bil repair.

If the projections are correct and the market does get to $35.1b GWP and a 41% cost is applied that is around $14.5b in repair costs.

If AMA can just grow revenue with the GWP increase of the insurers that is $1.3b of potential revenue. The potential for AMA to grab a bigger slice of that repair market also has to be good.

Maybe the big players can see this and that is why they have supported the CR. Looking at the share price of IAG it looks like the investors are taking this increase projection seriously as the SP is rising fast.


Personally I don't think the repair industry can grow that fast. There isn't enough trades around to do that much more work on current prices. I think there will be a squeeze on upward pricing.