Australia’s life insurance market is forecast to grow by just 1.7% this year — raising fresh questions about whether disability cover is keeping pace with rising living costs and the real needs of policyholders.
According to new data released by GlobalData, the country’s total life insurance premium income is expected to reach AUD 59.5 billion in 2025, up slightly from last year. The modest uptick comes despite growing consumer awareness about the importance of financial protection, particularly for families living with chronic illness or disability.
Yet for people who rely on disability benefits through income protection or trauma cover, experts warn that small market growth won’t solve deeper problems in the sector — including complex claims processes, benefit caps, and rising premiums that can make cover unaffordable.
“In tough economic times, people with disabilities are often the first to feel the pinch when insurers tighten terms or hike premiums,” says a local disability advocate. “This is an opportunity for the industry to rebuild trust and make sure products actually deliver when they’re needed most.”
Analysts say new digital underwriting and claims technology could help improve turnaround times and transparency, but real progress will depend on insurers making fairness and accessibility a priority.
As Australia’s life insurance market steadies, the call is clear: stronger, simpler, and more reliable disability cover must be part of the conversation if the industry wants to keep the trust of the people it serves.
