The Insurance Council of Australia (ICA) reported a $1.94 million operating loss for the year ending December 31, 2024. The deficit was attributed to unplanned spending tied to regulatory responses, workforce initiatives, and higher-than-forecast catastrophe response costs. The ICA absorbed the loss using accumulated earnings from previous years’ surpluses.
According to the ICA’s newly released Annual Report, the deficit reflected the council’s efforts to support the general insurance sector through increased scrutiny, policy reform, and industry development projects. Steve Johnston, ICA chair and Suncorp Group CEO, noted that 2024 was marked by economic pressures and ongoing natural hazards. “In 2024, our industry paid out nearly $50 billion in claims, an average of $192 million every working day, demonstrating the critical role we play in supporting customers when they need it most,” he said.
Johnston emphasized that insurance affordability remains a major challenge, particularly as climate risk escalates. “As an industry that prices risk, we know the most effective way to keep premiums manageable is to reduce risk. This is a long-term strategy and requires close collaboration with governments to identify the most effective ways to meaningfully achieve this,” he added.
Key Developments in 2024
The ICA board experienced significant turnover in 2024. Nick Hawkins, IAG managing director and CEO, concluded his term as president in December. The council welcomed new members throughout the year, including Tara Page from RAA Insurance, Tracey Bryan from Lloyd’s Australia, Paul Fahey from Hollard Holdings Australia, and Nathaniel Simpson from Youi.
Managing Weather Impacts and Policy Reforms
Chief executive officer Andrew Hall said the year began with recovery efforts from severe weather incidents, including ex-Tropical Cyclone Jasper and summer storms. Although 2024 saw only two insurance catastrophes declared – the Valentine’s Day and April storms – claim volumes remained high due to lingering effects from earlier disasters.
“Despite fewer major events, the industry’s response to past catastrophes remained under the spotlight. The Parliamentary Inquiry into insurers’ responses to 2022 major floods claims and the Independent Review of the General Insurance Code of Practice reinforced the need for continuous improvement in claims handling and customer outcomes,” Hall said.
Advocacy and Strategic Initiatives
The ICA launched or advanced multiple strategic projects in 2024, including a disaster response charter, an electric vehicle safety partnership with Fire and Rescue NSW, and a talent development roadmap designed to attract new professionals to the sector. The council also supported efforts to remove insurance taxes, recommended amendments to towing laws, and pushed for building code reforms to prioritize resilience.
Priorities for 2025
Looking ahead, the ICA said its key priorities include closing the protection gap in areas like home insurance, strengthening member engagement, and increasing trust through transparency and customer-focused practices. The council also committed to sustainable practices, both internally and across the broader industry, with a particular focus on climate risk adaptation and disaster readiness.
