The Insurance Council of Australia recorded an operating loss of $1.94 million last year as responses to reviews and late 2023 catastrophes added to expenses.

A significant portion of the result related to unbudgeted expenditure from work responding to reviews and supporting recruitment to the industry, chair Steve Johnston says in the annual report.

Expenses related to managing and attending to Cyclone Jasper and 2023 Christmas storm catastrophes were also higher than expected. 

“This loss will be realised against the members’ funds in part due to the prior years of consecutive surpluses, which greatly boosted retained earnings and enabled ICA to partly fund the 2024 budget,” Mr Johnston said. 

ICA’s priorities this year include engaging with policymakers after the federal election to advocate for risk reduction, regulatory reform and closing the protection gap. 

Mr Johnston says ICA will also be arguing for the removal of inefficient and unfair state insurance taxes, revising the code of practice and combating fraud. 

“As we look ahead, our industry remains committed to applying lessons from recent reviews to better support customers and meet their evolving needs,” he said. 

ICA members represent about 85% of premium written by general insurers and reinsurers. 

Across the industry, 86 million policies were active last year, covered by 88 insurance companies. The policy number includes 21 million for compulsory third party, 18.2 million for domestic motor, 12.4 million for houseowners and householders, 9.5 million for public and product liability, and 7.9 million for travel. 

The industry incurred claims of $49.9 billion, including $14.1 billion for domestic motor and $8.6 billion for householders. 

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