Damage control: Higher premiums have aided revenue growth, despite declining profit

The General Insurance industry provides protection for individuals, households and businesses from financial loss associated with events such as natural disasters, car accidents, theft and malpractice. The industry collects regular payments (known as premiums) from policyholders, part of which is used to pay for claims against losses from aforementioned events. The industry has performed well over the past five years, spurred by rising demand for domestic and commercial insurance products. Industry revenue is forecast to rise by an annualised 4.0% over the five years through 2017-18, to total $5.9 billion.Industry revenue has consistently risen since 2011-12, albeit at a declining pace...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 13-18
4.0%
Forecast Growth 18-23
Profit
Employment
7,644
Businesses
905

Industry Report - Industry Investment Chapter

The General Insurance industry exhibits a low level of capital intensity. For every dollar paid as wages, an estimated $0.08 is spent on capital investment. The industry generally demands highly skilled employees specialising in finance, mathematics and statistics, risk management or actuarial science. Given the complexity of insurance products, both sales staff and after-sales service staff must be highly knowledgeable about industry products to effectively deliver appropriate customer service. Capital investment in the industry is generally geared towards improving technology. As the industry grows increasingly reliant on online sales channels to distribute their products, capital intensity is expected to rise over the next five years. In ...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
  • Provision of a related range of goods/services ("one stop shop")
  • Well developed internal processes
  • IBISWorld analysts also discuss how external factors such as Natural disasters and Number of households in the General Insurance industry impact industry performance..

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    What's in this report

    What is the General Insurance in New Zealand Industry?

    General insurers underwrite insurance policies to protect individuals and businesses from financial loss associated with property damage, motor vehicle damage, 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
  • Domestic insurance
  • Motor vehicle insurance
  • Commercial insurance
  • Liability insurance
  • Marine insurance
  • Other insurance
  • Industry Activities
  • Home insurance provision
  • Motor vehicle insurance provision
  • Professional indemnity insurance provision
  • Employers' liability insurance provision
  • Mortgage and consumer credit insurance provision
  • Fire 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
  • Natural disasters
  • Number of households
  • Number of motor vehicles
  • Cash rate

  • Current Performance
  • Operating environment
  • Earthquake damage
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Natural disasters
  • Industry competition
  • 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 in New Zealand
  • General Practice Medical Services in New Zealand
  • Banking in New Zealand
  • Agribusiness in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Insurance Brokerage in New Zealand

  • Products & Services
  • Domestic insurance
  • Motor vehicle insurance
  • Commercial insurance
  • Liability insurance
  • Other insurance
  • Marine 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
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the General Insurance Industry

  • Industry Globalization
    IAG (NZ) Holdings Limited, Suncorp Group Holdings (NZ) Limited, QBE Insurance Group Limited,
  • Table: IAG (NZ) Holdings Limited - financial performance
  • Table: Suncorp Group Holdings (NZ) 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 (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
    Chatbot
  • A computer program that simulates human conversation via machine-learning software (artificial intelligence).
  • Credit Rating
  • An assessment of the creditworthiness of an institution or individual in general terms or with respect to a particular debt or financial obligation.
  • Underwriting
  • Accepting liability under an insurance policy and guaranteeing payment in case of loss or damage.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s General Insurance in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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