Industry Analysis & Industry Trends
Life insurers protect millions of Australian families and businesses from the financial hardship that arises from death, disability and trauma. Loss of income is the most common effect of such life events and is a subsequent cause of financial problems. For example, most families would struggle to meet financial obligations such as mortgage repayments, utility bills and food costs should the primary breadwinner die without insurance. However, with cover the insurer pays cash to the deceased's dependants, ideally allowing them to meet these needs.
It is surprising, therefore, that Australia is considered among the most underinsured developed nations, and insurance salespeople generally receive a bad reputation... purchase to read more
Industry Report - Industry Products Chapter
Industry revenue comprises net premium income, premium related fees and investment earnings. The product segmentation is based on net premium income only as this represents the products purchased by consumers. In 2012-13, premium and deposit income is expected to account for 75.8% of industry revenue. The industry's total revenue is expected to exceed premium income in 2012-13, as investment returns recover after the financial crisis when significant investment losses were incurred. Premium income is fairly consistent, and the size and direction of investment income largely determines any significant variations in industry revenue.
In general, life insurance products can be categorised according to investment linked plans and non-investment linked plans... purchase to read more