Narrow road: Falling interest rates and higher claim volumes have put pressure on margins

IBISWorld’s Car Insurance 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.


Industry Threats & Opportunities

  • The number of motor vehicles on Australian roads has increased steadily over the past five years
  • Some online-only car insurers have achieved strong growth over the past five years
  • The 10-year bond rate is projected to increase, boosting returns on investments

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    Industry Analysis & Industry Trends

    Although the Car Insurance industry has grown steadily over the past five years, it has been characterised by falling investment returns and faced with a rising number of natural disasters. As the frequency of natural disasters has risen, so too has the frequency of insurance claims. Although insurers have been able to pass on the rising costs to policyholders, the time lag between the new premium prices and payouts has driven industry profitability downwards over the five-year period. Due largely to the privatisation of compulsory third-party (CTP) insurance in South Australia, industry revenue is expected to grow at an annualised 1.3% over the five years through 2017-18, to reach $19.7 billion. This includes revenue growth of 0.4% in the current year...

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    What is the Car Insurance industry?

    The Car Insurance industry exhibits high barriers to entry. It is an established industry with many major players that have a strong position in certain areas of the market. Consumer trust is paramount to success in the industry, meaning that new players with no history of good records are likely to find it difficult to acquire new business and secure new contracts. With the same line of insurance, long-time operators generally have a long record of satisfied customers, reinforcing the reputation of incumbent players and making it harder for new operators to succeed.

    Another difficult barrier to overcome is compliance with regulations set by oversight bodies. The...

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    Additional Insights for the Car Insurance Industry

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

  • Ability to effectively manage risk
  • Maintenance of excellent customer relations
  • Management of quality investment portfolio
  • IBISWorld analysts also discuss how external factors such as year bond rate and Number of motor vehicles in the Car Insurance industry impact industry performance..

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    Products & Brands

    Major products in this industry
    Commercial motor vehicle insurance
    Private motor vehicle insurance
    Compulsory third-party motor vehicle insurance
    Examples of brands in this Industry
    NRMA Insurance
    Suncorp Metway
    Vero Insurance
    Just Car Insurance

    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
  • All Ordinaries index
  • Natural disasters

  • Current Performance
  • Falling investment returns
  • Online insurance
  • Growth strategies
  • Chart: Revenue Growth

  • Industry Outlook
  • Strategic moves
  • Regulatory changes
  • Table: Car Insurance Industry Revenue Outlook

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Road Freight Transport
  • Taxi and Limousine Transport
  • Passenger Car Rental and Hiring
  • Consumers

  • Key Selling Industries
  • Financial Asset Investing
  • Insurance Brokerage

  • Products & Services
  • Private motor vehicle insurance
  • Compulsory third-party motor vehicle insurance
  • Commercial motor vehicle insurance
  • Chart: Car Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Passenger vehicle owners
  • Freight and manufacturing industries
  • Other markets
  • Car hire and rental firms
  • Passenger transportation companies
  • Chart: Major Market Segmentation for the Car 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 Car Insurance

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Car Insurance Industry

  • Industry Globalization
    Major Companies
    Insurance Australia Group LimitedSuncorp Group LimitedAllianz Australia LimitedQBE 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

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Car 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 Car Insurance Industry
  • 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
    Jargon & Glossary
    Ctp Insurance
  • Compulsory third-party insurance is an obligatory insurance that covers personal injuries inflicted to people (other than the drivers) involved in an accident.
  • Fleet Insurance
  • A specialised motor vehicle insurance that is usually purchased by business operators that own more than 15 vehicles.
  • Reinsurance
  • A type of insurance that is usually purchased by an insurance company as a risk management tool.
  • 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 Car 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 Car 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 Car Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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