How much of my home insurance premium actually funds claims?

Home Insurance Premium Breakdown

Most Australians consider home insurance to be essential and worthwhile. However, self-insurance or limiting insurance only to the extent necessary and most value-for-money should be considered. The below calculator shows how much of home insurance premiums is spent on claims vs other expenses. This is the "payout ratio." The lower the payout ratio considering your level of risk, the less you should insure.

Annual Premium: Claims (%): Taxes (%): Reinsurance (%): Operating Expenses (%): Profit (%):

Reference: https://insurancecouncil.com.au/wp-content/uploads/2025/03/INCA015-Fact-Pack-2025_v2.8-1.pdf