Industry Analysis & Industry Trends
The past five years have been characterised by a run of poor investment performance and consecutive seasons of destruction. As the frequency of natural disasters has risen, so has the frequency of insurance claims. As natural disasters have caused damage across Australia, the value of payouts has risen quickly, putting pressure on insurers' profit margins. 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 caused profit margins to decline substantially. The rise in claimants has been compounded by poor investment income because of the low-yield environment. Weak economic conditions have driven up demand for bonds and other high-quality fixed income assets that insurers are heavily invested in... purchase to read more
Industry Report - Industry Products Chapter
The Car Insurance industry can be broken down based on various parameters such as type of cover or ownership of vehicles. There are three main types of products offered by the industry based on vehicle ownership: domestic motor vehicle insurance, commercial vehicle insurance and compulsory motor vehicle insurance.
Compulsory third-party motor vehicle insurance
Compulsory third-party (CTP) insurance is an obligatory insurance that is required of every motor vehicle in Australia. Governments provide the insurance in most states except for New South Wales, Queensland and the Australian Capital Territory. CTP insurance in these states is provided by private insurance operators and is regulated based on local legislation and requirements... purchase to read more