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The insurance industry in Australia is seeing unprecedented challenges in 2026, mostly led by severe weather events, inflation, construction costs, and the cost of labour. Insurers, who must always carefully evaluate risk and account for forecasted and sometimes unforeseen events, certainly have a lot to consider when it comes to providing clients with robust insurance policies. What is the most claimed insurance in Australia? Moreover, what types of insurance are important to consider for an overall insurance strategy and your investment goals? What is the Most Claimed Insurance in Australia? The truth is that it isn’t 100% certain which insurance type or category is the most widely held nationwide, but we can draw several inferences from the Insurance Council of Australia’s 2025 snapshot on the industry. By sheer coverage, the most widely held insurance policies are those that are mandatory or near-universal. According to the 2025 industry snapshot, tens of millions of motor-related insurance policies are in force nationwide. To legally register a vehicle, owners must hold Compulsory Third Party (CTP) motor insurance (known as a “Green Slip” in NSW). As a result, motor insurance is likely the most common form of insurance held in Australia, simply out of necessity. Routine Claims: Policies to Consider Depending on your age and life circumstances, several insurance policies may be appealing to you for added peace of mind. Home and home contents insurance are certainly worth considering if you live in a flood or bushfire-prone area, especially since severe weather is highlighted as a key risk in the 2025 snapshot. Health insurance can be smart for long-term healthcare in private clinics, especially with increasing wait times in parts of the public system. Big Impacts: Policies to Consider There are also several insurance policies that are intended for unanticipated major life events. These include life insurance, total permanent disability, critical illness or trauma, income protection, and child cover. The payouts for many of these tend to be significantly larger than, say, a claim to replace your windscreen on your car, but they are specifically for critical or life-changing events, which can often completely disrupt your plans.  Is Insurance Necessary for Your Financial Planning?
Insurers can be very knowledgeable, poring over statistics and fine details, observing trends and regulatory changes, and refining policies for their clients. A qualified and responsible insurer will carefully weigh the cost of client premiums versus risk, as best they can, but even when done well, it does not necessarily mean that you need one policy or another - that is often a personal matter which you must consider yourself. That being said, being underinsured can introduce a great amount of risk and interrupt your retirement or life plans, perhaps dramatically so. Make sure that you choose policies that reflect your life circumstances and risk, and work with a financial planning specialist and insurer that takes your specific circumstances into account. Davlin Wealth Management Contact us today at Davlin Wealth Management. Comments are closed.
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