Growth at a premium: Higher premium income helps support industry revenue

The General Insurance industry provides protection for individuals, households and businesses from financial loss associated with events such as car accidents, floods, break-ins and malpractice. General insurers provide this coverage at a fraction of the potential loss by spreading risk over many policies. The industry earns revenue from the sale of insurance policies (premium income) and the investment of premium reserves in bonds, stocks and other assets (investment income). Policy pricing trends alternate between soft and hard market conditions, which typically change following certain events, such as severe underwriting losses or changes in the competitive landscape. Hard market conditions will generally produce growth in premium revenue without a change in coverage levels...read more.

Industry Statistics & Market Size
Revenue
$64bn
Annual Growth 13-18
2.2%
Forecast Growth 18-23
Profit
Employment
21,605
Businesses
100

Industry Threats & Opportunities

  • Rising premiums after several large-scale natural disasters have underpinned industry growth
  • Several large-scale natural disasters in Australia have put pressure on profit margins
  • Weather heavily affects the industry, as natural disasters can increase insurance claims
  • Industry Report - Industry Analysis Chapter

    The General Insurance industry has grown over the past five years on the back of rising premiums. The industry has also grown from a high base following the strong performance of financial markets in 2012-13. General insurers have faced a rising number of claims over the past five years, which has driven down profitability over the period. The fall in industry profitability has been further exacerbated by the strong performance of financial markets at the start of the period, which supported high profit margins in 2012-13. Despite premium revenue rising steadily over the past five years, cuts to the cash rate weighed on the industry’s returns from fixed-interest assets, which has also limited industry revenue growth. As a result, industry revenue is expected to rise at an annualised 1.5% o...purchase to read more.

    Additional Insights for the General Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the General Insurance Industry are

  • Ability to effectively manage risk
  • Management of a high-quality assets portfolio
  • Provision of a related range of goods and services
  • IBISWorld analysts also discuss how external factors such as Cost of natural disasters and year bond rate in the General Insurance industry impact industry performance..

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    What's in this report

    What is the General Insurance Industry?

    The industry includes general insurers and reinsurers. General insurers underwrite insurance policies to cover individuals and businesses’ financial loss associated with property, casualty, liability and other risks. Underwriting involves assuming risks and assigning premiums. Reinsurers assume all or part of the risk associated with existing insurance policies underwritten by other insurers.

    Industry Products
  • Motor vehicle insurance
  • Home insurance
  • Reinsurance
  • Fire and ISR insurance
  • Public and product liability insurance
  • Professional indemnity insurance
  • Employers' liability insurance
  • Other direct insurance
  • Industry Activities
  • Motor vehicle insurance provision
  • Household insurance provision
  • Fire and industrial special risks (ISR) insurance provision
  • Public and product liability insurance provision
  • Professional indemnity insurance provision
  • Employers' liability insurance provision
  • Mortgage and consumer credit insurance provision
  • Travel insurance provision
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Cost of natural disasters
  • year bond rate
  • Number of households
  • Number of motor vehicles
  • All Ordinaries index

  • Current Performance
  • Operating environment
  • Natural disasters
  • Investment returns
  • Online aggregators
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry profitability
  • Natural disasters
  • New competition
  • Technology
  • Table: General Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - General Insurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Health Services
  • Agribusiness
  • Integrated Logistics
  • Consumers

  • Key Selling Industries
  • Insurance Brokerage

  • Products & Services
  • Motor vehicle insurance
  • Employers' liability insurance
  • Home insurance
  • Reinsurance
  • Other insurance
  • Fire and ISR insurance
  • Public and product liability insurance
  • Professional indemnity insurance
  • Chart: General Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private clients
  • Commercial clients
  • Insurers
  • Chart: Major Market Segmentation for the General Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs General Insurance

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the General Insurance Industry

  • Industry Globalization
    Insurance Australia Group Limited, Suncorp Group Limited, QBE Insurance Group Limited, Allianz Australia Limited,
  • Table: Insurance Australia Group Limited - financial performance
  • Table: Suncorp Group Limited - financial performance
  • Table: QBE Insurance Group Limited - financial performance
  • Table: Allianz Australia Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the General Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the General Insurance Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Alien Insurers
  • Insurers formed in a different country to where it conducts a portion or all of its business.
  • Cessation Ratio
  • The proportion of insurance ceded (i.e. passed on) by an insurer to a reinsurer.
  • Combined Ratio
  • A measure of underwriting performance that equals the sum of the loss and expense ratios. A combined ratio above 100% indicates an underwriting loss.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s General Insurance market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on General Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The General Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on General Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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