Cover up: Higher premium income has underpinned the industry's revenue performance

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 insurance policy sales and the investment of premium reserves in bonds, stocks and other assets. Premiums tend to fluctuate 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
$66bn
Annual Growth 14-19
1.7%
Forecast Growth 19-24
Profit
Employment
21,589
Businesses
97

Industry Threats & Opportunities

  • The increasing costs of natural disasters have resulted in industry operators raising premiums
  • 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 Investment Chapter

    The General Insurance industry exhibits a low level of capital intensity. For every dollar paid as wages, an estimated $0.10 is spent on capital investment. Providing general insurance is a labour-intensive undertaking, with minimal capital investment required. Policies are generally sold via salespeople, either over the phone or in person. As insurance is a complex product, both sales staff and after-sales service staff must be highly knowledgeable about industry products to be able to effectively deliver the services. In addition, staff dealing with clients must have exceptional communication skills. Beyond sales and customer services, the industry requires labour for administrative work, such as claims processing and customer accounts maintenance. Alt...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 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, Allianz Australia Limited, QBE Insurance Group Limited,
  • Table: Insurance Australia Group Limited - financial performance
  • Table: Suncorp Group Limited - financial performance
  • Table: Allianz Australia Limited - financial performance
  • Table: QBE Insurance Group 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • 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?

    The General Insurance market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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