Australia and the wider Asia-Pacific region are expected to generate about $US152.2 billion ($229 billion) of property premium in 2028, analytics group GlobalData says.

The forecast represents a compound annual growth rate of 10.8% from an estimated $US93.1 billion (140 billion) last year, outpacing the global average of 8.1% over the same period.

Property premium this year is projected to rise 8.3% to $US100.8 billion ($152 billion).

“The APAC property insurance market is poised for significant growth … driven by disciplined underwriting practices and a rise in premiums for fire and home multi-risk property insurance classes,” insurance analyst Aarti Sharma said.

He says “growing awareness of the financial risks of natural disasters and the need for comprehensive coverage” has driven a surge in demand for fire and home multi-risk products, including in Australia.

“Premium price increases in fire and home multi-risk due to increased reinsurance costs and exposure to nat cat events will support the growth of ... property insurance in [the region] over the next five years.”

GlobaData says Australia, Japan and China account for 75.2% of the region’s property insurance market by written premium. China is expected to account for 36% of premium this year, followed by Japan (23.5%) and Australia (15.7%).