Quaking even: Natural disasters have raised premiums but claims have reduced profitability

The General Insurance industry protects 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 are used to pay for claims against losses from the aforementioned events. The industry has performed solidly over the past five years, supported by rising demand for domestic and commercial insurance products. Overall, industry revenue is expected to rise at an annualised 2.3% over the five years through 2018-19, to total $5.7 billion.Industry revenue has grown for most years of the past five-year period...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Increased regulation and decreased participation have constrained industry growth
  • Emerging risks such as cyber attacks have boosted commercial insurance sales
  • Businesses will increasingly demand cyber risk insurance as they adopt cloud technologies
  • Industry Report - Industry Key Buyers Chapter

    The General Insurance industry's market share concentration is high. The top four general insurers in New Zealand are expected to account for over 80% of industry revenue in 2018-19. The largest two players primarily operate as insurance groups, each owning a portfolio of brands. IAG (NZ) Holdings Limited owns industry brands such as State and AMI. Suncorp Group Holdings (NZ) Limited owns Vero Insurance and operates under the AA Insurance brand. Over the past five years, industry concentration has grown due to declining industry participation among smaller insurers that have been forced out of the market...purchase to read more.

    Additional Insights for the General Insurance Industry

    IBISWorld has determined the most important Key Success Factors for the General Insurance 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 Cost of 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
  • Cost of 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
  • Profit
  • Claims expense
  • Wages
  • Other
  • 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 (Australia) Limited,
  • Table: IAG (NZ) Holdings Limited - financial performance
  • Table: Suncorp Group Holdings (NZ) Limited - financial performance
  • Table: QBE Insurance (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
  • 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
  • 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?

    The General Insurance in New Zealand 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 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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