IAG's Profits Surge by 91% as Premiums Continue to Rise

CEO Signals Ongoing Premium Increases Despite Easing Inflation

Insurance Australia Group (IAG) has reported a significant 91% increase in net profit for the first half of the fiscal year, reaching $778 million.

This substantial growth is attributed to favourable weather conditions and strategic business operations.

Despite a general easing of inflationary pressures, IAG's CEO, Nick Hawkins, has indicated that insurance premiums are expected to continue rising, albeit at a slower pace.

Hawkins highlighted that while inflation has impacted both insurers and policyholders, the future appears more favourable, with inflationary pressures expected to diminish over the next six to twelve months. However, he noted that premiums would likely increase in line with inflation, reflecting ongoing challenges in the insurance market.

For tradespeople, this trend underscores the importance of regularly reviewing insurance policies to ensure they remain cost-effective and provide adequate coverage. Staying informed about market developments and exploring competitive options can help mitigate the impact of rising premiums on business operations.

Published:Saturday, 4th Oct 2025
Source: Paige Estritori

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Knowledgebase

Incontestability Clause:
A provision in a life insurance policy that prevents the insurer from voiding coverage due to a misstatement by the insured after a certain period.

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