Industry Analysis & Industry Trends
The past five years have been characterised by declining investment returns and the rising number of natural disasters. As the frequency of natural disasters has risen, so has the frequency of insurance claims. Although insurers have been able to pass on the rising costs to policy holders, the time lag between the new premium prices and payouts has put pressure on profit margins. Despite these trends, industry profitability has risen, largely due to the low profit base following the Queensland floods in 2010-2011. Over the five years through 2015-16, industry revenue is forecast to grow at an annualised 2.5%... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Car Insurance industry is in the growth stage of its life cycle. Industry value added (IVA), which measures an industry's contribution to the economy, is forecast to grow at an annualised 7.3% over the 10 years through 2020-21. This represents an outperformance of overall GDP, which is projected to increase at annualised 2.8% over the same period, indicating the industry's contribution to the overall economy is increasing.
Continued growth in the number of motor vehicles will contribute to steady growth in premium income. Improving investment conditions will also play a large part in boosting the industry's contribution to the economy. As economic conditions strengthen, the yield curve is expected to normalise... purchase to read more