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 - Starting a New Business Chapter
Barriers to entry into the industry are considered high. The Car Insurance industry is an established industry with many major players that have a strong position in certain areas of the market. Consumer trust is paramount to success in the industry, meaning that new players with no history of good records will find it difficult to secure new contracts. In the same line, long-time operators generally have a long record of satisfied customers, reinforcing the reputation of incumbent players and making it harder for new operators to succeed.
Another difficult barrier to overcome is compliance with regulations set by overseeing bodies... purchase to read more