Industry Analysis & Industry Trends
Despite a spate of earlier financial shocks and a recovering economy, the Motorcycle Insurance industry has been accelerating at a comfortable pace over the five years through 2014-15. Consumers have taken up motorcycles as the increasing world price of crude oil has made the upkeep of cars more expensive. 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 the 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... purchase to read more
Industry Report - Industry Investment Chapter
The Motorcycle Insurance industry is expected to exhibit a low level of capital intensity. The majority of the industry operations are carried out by employees that assess and qualify customers for motorcycle insurance. However, IBISWorld expects that capital intensity will increase over the next five years as more online insurance companies spring up. Computer automation and online operations could displace some labour functions.
The labour to capital ratio for the industry is expected to be 1:0.11 in 2014-15, meaning that for every $1.00 paid as wages, $0.11 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... purchase to read more