Keep on trucking: Strong demand for road transport has contributed to industry growth

The Commercial Motor Vehicle Insurance industry's performance has been supported by steady growth in revenue from premiums over the past five years, despite investment revenue gradually declining. While the industry derives the majority of its revenue from insurance premiums, many operators rely on investment income to strengthen their profit margins. As a result, revenue typically fluctuates to a greater degree than underlying demand for commercial motor vehicle insurance, which tends to exhibit stable growth. Industry revenue is expected to increase at an annualised 3.2% over the five years through 2016-17. This includes anticipated revenue growth of 2.5% in 2016-17, to $3.6 billion...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 12-17
3.2%
Forecast Growth 17-22
Profit
Employment
1,198
Businesses
522

Industry Threats & Opportunities

  • Online comparison tools have affected the industry, as customers become more price-conscious
  • Government infrastructure investment will help road transport maintain its competitive advantage
  • Industry Report - Industry Products Chapter

    Revenue generated by the Commercial Motor Vehicle Insurance industry is broken down into compulsory third-party insurance, insurance provided by public insurers and insurance provided by domestic insurers. This excludes revenue generated by investment income.Commercial motor vehicle insuranceThe commercial motor vehicle insurance segment accounts for all comprehensive and non-compulsory third-party insurance policies provided for commercial motor vehicles including trucks, vans, trailers and other specialised vehicles used for commercial purposes. Firms also offer coverage for car fleets, which is typically taken out by large companies. Insurers charge different premiums according to the usage of the vehicle, how many kilometres it travels, and its size and value. Thi...purchase to read more.

    Additional Insights for the Commercial Motor Vehicle Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Motor Vehicle 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 Demand from road transport and Number of motor vehicles in the Commercial Motor Vehicle Insurance industry impact industry performance..

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    What's in this report

    What is the Commercial Motor Vehicle Insurance Industry?

    Industry firms provide insurance for vehicles used for business purposes. These include vehicles such as trucks, vans, trailers, ambulances and buses. The industry also covers motor fleets.

    Industry Products
  • Commercial motor vehicle insurance
  • Compulsory third-party insurance
  • Public commercial motor vehicle insurance
  • Industry Activities
  • Underwriting individual commercial motor vehicle insurance
  • Underwriting fleet commercial motor vehicle insurance
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from road transport
  • Number of motor vehicles
  • year bond rate
  • All Ordinaries index
  • Total capital expenditure

  • Current Performance
  • Industry structure
  • Online avenues
  • Safety
  • Chart: Revenue Growth

  • Industry Outlook
  • Trading landscape
  • Road Transport
  • Value added
  • Table: Commercial Motor Vehicle Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Motor Vehicle Insurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Iron Ore Mining
  • Road Freight Transport
  • Taxi and Limousine Transport
  • Passenger Car Rental and Hiring
  • Finance
  • Transport Equipment and Large Vehicle Rental

  • Key Selling Industries
  • Financial Asset Investing
  • Insurance Brokerage

  • Products & Services
  • Commercial motor vehicle insurance
  • Compulsory third-party insurance
  • Public commercial motor vehicle insurance
  • Chart: Commercial Motor Vehicle Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Transport, postal and warehousing firms
  • Services firms
  • Construction, agriculture and mining firms
  • Rental firms
  • Health care firms
  • Manufacturing firms
  • Other sectors
  • Chart: Major Market Segmentation for the Commercial Motor Vehicle Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Net incurred claims expense
  • Underwriting expense
  • Outward reinsurance expense
  • Wages
  • Rent, utilities, depreciation and other
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Motor Vehicle Insurance

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Motor Vehicle 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 Commercial Motor Vehicle 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 Commercial Motor Vehicle 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
    Ceding
  • When an insurance company passes on a portion of its risk to reinsurers.
  • Ctp Insurance
  • Short for compulsory third-party insurance, which is an obligatory insurance that covers personal injuries inflicted on people (other than the drivers) that are involved in an accident.
  • Fleet Insurance
  • A specialised type of motor vehicle insurance usually purchased by business operators that own more than 15 vehicles.
  • Underwriting
  • The measurement of risk exposure and pricing of a premium accordingly, to manage the insurer's exposure.
  • What Our Customers Say

    Why buy this report?

    The Commercial Motor Vehicle 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 Commercial Motor Vehicle 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 Commercial Motor Vehicle 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 Commercial Motor Vehicle Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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