Overview

Danger zone: Natural disaster insurance claims have limited industry profitability

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.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Industry revenue will grow as both local and global economies record stronger growth
  • Several large-scale natural disasters in Australia have put pressure on profit margins
  • The industry is heavily affected by weather, as natural disasters can increase insurance claims

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    Industry Analysis & Industry Trends

    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...

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    Industry Report - Industry Analysis Chapter

    General insurers have faced low prices, heavy losses from natural disasters and the flow-on effects of the Queensland floods over the past five years. Operators’ cash reserves have been eroded by earlier years of poor profitability, limiting firms’ ability to provide coverage and placing upward pressure on prices. Although financial markets performed strongly over the two years through 2013-14, providing insurers with more consistent investment returns, severe natural disasters across Australia forced insurers to pay out an unprecedented amount of claims. As a result, any growth in profitability arising from the strong performance of financial markets was largely negated by the sharp rise in claims incurred over the early part of the past five-year period. Fur..

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    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 year bond rate and Number of motor vehicles in the General Insurance industry impact industry performance..

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    Industry Products

    What is the General Insurance Industry?

    The industry includes general insurers and reinsurers. General insurers underwrite insurance policies to protect individuals and businesses from 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
    Home 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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • year bond rate
  • Number of motor vehicles
  • Natural disasters
  • Number of households
  • All Ordinaries index

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

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

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Mining
  • Wholesale Trade
  • Consumer Goods Retailing
  • Finance
  • Health Services
  • Agribusiness
  • Organic Farming
  • Integrated Logistics
  • Consumers

  • Key Selling Industries
  • Insurance Brokerage

  • Products & Services
  • Motor vehicle insurance
  • Employers' liability insurance
  • Home insurance
  • Reinsurance
  • Other direct 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
    Competitive Landscape
    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
    Major Companies
    Insurance Australia Group LimitedSuncorp Group LimitedQBE Insurance Group LimitedAllianz 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

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the General Insurance Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    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.
  • Expense Ratio
  • The proportion of underwriting expenses to net premium revenue.
  • Loss Ratio
  • The proportion of net claims to net premium revenue.
  • Why buy this report?

    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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