The personal accident and health (PA&H) insurance industry in Australia is projected to grow at a compound annual growth rate (CAGR) of 4.6% from AUD35.7 billion ($23.5 billion) in 2026 to AUD42.8 billion ($27.7 billion) by 2030, in terms of direct written premium (DWP), according to GlobalData, a leading data and analytics company.

According to GlobalData’s Global Insurance Database, the Australian PA&H insurance market registered an annual growth of above 5% during 2022-25 and is expected to register more than 4% annual growth until 2030.

Despite evolving pricing cycles and intense competition, climate and health-related risk awareness, improvements in regulatory transparency, digital distribution, and embedded coverage will sustain PA&H insurance demand in Australia during 2026-30. Elevated health costs and rising out-of-pocket burdens are also catalyzing private cover uptake, reinforcing PA&H as a critical contributor to market momentum within Australia’s general insurance market.

Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: ” The expansion of PA&H by 5.3% in 2025 reflects stable demand and pricing resilience, while 2026 growth aligns with moderating yet steady premium uplift, alongside continued consumer focus on health, wellness, and income protection benefits as insurers refine product design and service models.”

Australians are increasingly prioritizing private health coverage to manage rising health expenditure and mitigate out-of-pocket risks. As a result, while the broader insurance market is experiencing a softening rate cycle in several lines, health premiums have moved higher, and out-of-pocket costs continue to rise, signaling a complex operating environment where affordability pressures coexist with robust demand for comprehensive protection.

According to the Department of Health, Disability and Ageing, private health insurance premiums in Australia grew by an average of 3.73% in 2025. Also, the country’s ageing population with increasing chronic health conditions and complex health care needs will further support the rise in healthcare premiums in 2026.  

Based on the insurers’ request to increase premium rates submitted in November 2025, the department will consult the Australian Prudential Regulatory Authority (APRA) and private insurers to finalize the rate increase in 2026. According to the initial figures, health insurance premiums are expected to rise by around 4% in 2026. The increase is evident and is a result of the rise of medical costs in 2025, which continues to support demand for health insurance.

Sahoo adds: “The risk of heatwaves is prominent in Australia, leading to increased mortality in urban areas and putting pressure on health expenditure and insurance claims. This has increased the need for resilient coverage solutions, particularly for vulnerable communities, and may influence product innovation across PA&H lines.”

Furthermore, digital enablement and embedded distribution are catalyzing access and compliance across health-related products. Insurtech investment is also building next-generation infrastructure for brokers and underwriters. AI capabilities target faster policy administration and claims, ultimately enhancing consumer experiences. These capabilities will play an increasing role through 2026–30 as PA&H insurers digitize service, refine risk analytics, and expand telehealth and mental health benefits to meet changing and emerging healthcare requirements.

Insurers need to leverage digital tools to tailor benefits and sharpen risk selection to stabilize loss ratios while maintaining coverage accessibility for price-sensitive segments.

Sahoo concludes: “Australia’s PA&H market is on a firm growth trajectory, as climate, health risks, and regulatory forces reshape risk and reinforce demand for comprehensive protection. With sharpening competition, elevated claims in select health verticals, and accelerating digital/embedded distribution models, insurers that balance affordability, coverage innovation, and customer-centric service will be best positioned to capture growth and strengthen resilience in the coming years.”