IAG CEO Predicts Ongoing Insurance Premium Rises Amid Easing Inflation

Hawkins highlighted that while inflationary pressures are easing, they have previously led to substantial cost increases across various sectors, including insurance. He noted that the cost of reinsurance has "dramatically changed" and would continue to influence premium rates, though future increases are expected to align more closely with general inflation trends. ([abc.net.au](https://www.abc.net.au/news/2025-02-14/iag-ceo-nick-hawkins-warns-of-further-premium-increases/104931074?utm_source=openai))

The Australian Bureau of Statistics reported an 11% rise in insurance prices over the year to December, down from a peak of 16.4% annual inflation in March of the previous year. This indicates a gradual stabilization in premium growth rates. ([abc.net.au](https://www.abc.net.au/news/2025-02-14/iag-ceo-nick-hawkins-warns-of-further-premium-increases/104931074?utm_source=openai))

Hawkins also emphasized the growing impact of climate change on the insurance industry. He pointed out that increased frequency and severity of weather events are contributing to higher claims and, consequently, rising premiums. IAG is actively focusing on understanding and mitigating these climate-related risks to better serve its customers. ([abc.net.au](https://www.abc.net.au/news/2025-02-14/iag-ceo-nick-hawkins-warns-of-further-premium-increases/104931074?utm_source=openai))

For small to medium business owners, self-employed professionals, and high-income freelancers, these developments underscore the importance of regularly reviewing insurance policies. Ensuring adequate coverage in the face of evolving risks and potential premium adjustments is crucial. Engaging with insurance providers to understand the factors influencing premium changes can aid in making informed decisions about coverage options.