Industry Analysis & Industry Trends
Despite a spate of financial shocks and a recovering economy, the Motorcycle Insurance industry has been accelerating at a comfortable pace over the five years through 2012-13. Consumers have taken up motorcycles as the increasing world price of crude oil has made the upkeep of cars tougher. More people adopting motorcycles as their main form of transport has provided a buffer against falling investment returns as a result of volatile financial markets. This trend has been most significant in coastal cities along Australia's eastern seaboard that have a large population concentration and high levels of traffic congestion and pollution. These conditions have prompted consumers to purchase motorcycles for increased manoeuvrability in large cities... purchase to read more
Industry Report - Industry Investment Chapter
The Motorcycle Insurance industry is expected to exhibit a low level of capital intensity. The labour to capital ratio for the industry is expected to be 1:0.09 in 2012-13, meaning that for every $1.00 paid as wages, $0.09 is required as a capital investment. This is typical of a service-based industry, especially one with a relatively high knowledge base requirement in risk assessment and accounting, among a number of other disciplines. Capital investment by insurers includes investment in computers and software, which can be critical in the assessment of daily investment positions and customer risk profiles. Despite this, IBISWorld expects the level of capital intensity to be in line with those of other financial services industries... purchase to read more