Taylor Fry RADAR FY2025: Key Themes for Insurers After a Record Year

Following another year of record-breaking profits, RADAR FY2025 from Taylor Fry highlights the evolving landscape for Australian insurers, with a focus on transparency, customer experience, AI adoption, and climate-related risks.

The general insurance sector posted its strongest result in over a decade, with a profit after tax of $7.3 billion to 30 June 2025, driven by lower-than-expected catastrophic losses, strong investment returns, reserve releases, and sustained premium growth.

While these results are impressive, insurers face heightened scrutiny around pricing fairness and customer trust. RADAR FY2025 emphasises the importance of a long-term perspective: insurance remains inherently volatile year to year, acting as a shock absorber for households and the broader economy.

Opportunities now lie in investing in customer relationships, improving claims and underwriting processes, and embracing AI. Examples such as the response to Cyclone Alfred show how proactive, customer-first approaches can accelerate claims handling and strengthen loyalty.

AI is increasingly used to streamline underwriting, reduce customer burden, and guide claims management. The report also flags emerging risks from climate change and the energy transition, including electric vehicles, battery storage, and solar capacity growth, which will reshape risk and profitability.

Insurers and reinsurers alike must balance growth with disciplined risk selection while improving transparency and fairness.

Looking ahead, RADAR FY2025 stresses that empathy, critical thinking, and proactive customer engagement will be central to building trust, securing loyalty, and sustaining long-term success.

Insurers that elevate the customer experience and embrace innovation now will be best positioned to navigate volatility, adapt to evolving risks, and maintain strong foundations for the future.

Read the RADAR report