Overview

Home and dry: Operators have raised premiums, causing industry profit to increase

IBISWorld’s Home and Contents Insurance market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • The number of Australian home and contents insurers has declined over the past five years

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    Industry Analysis & Industry Trends

    The Home and Contents Insurance industry has grown strongly over the past five years, recovering from a turbulent period. The Queensland floods of 2010-11 and a series of other natural disasters soon after has provided a low base from which insurers have grown. Industry profitability was adversely affected by the unprecedented level of claims arising from the floods, which caused several billion dollars in damages. Insurers were forced to raise premiums significantly to cope with the increased level of risk and to recover the profit that was eroded by the flood. On the back of rising premiums, industry revenue is forecast to grow at an annualised 4.8% over the five years through 2016-17. Industry revenue is projected to rise by 4.3% in 2016-17 to reach $9.3 billion...

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    What is the Home and Contents Insurance industry?

    The Home and Contents Insurance industry exhibits a high level of barriers to entry. The major barriers for potential entrants is the strict insurance regulatory requirements, and the high level of concentration, which makes it difficult for new entrants to obtain market share. To become a general insurer in Australia, potential entrants need to obtain authorisation from the Australian Prudential Regulation Authority (APRA) and report regularly to APRA. APRA regulation and policy also impose a minimal level of capital assurance and solvency to maintain operations. This means that capital requirements are particularly high, especially for home and contents insurance, where claims are often for high-value assets. Des...

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    Additional Insights for the Home and Contents Insurance Industry

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

  • Ability to carry out risk assessment of clients
  • Access to highly skilled workforce
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Number of households and Natural disasters in the Home and Contents Insurance industry impact industry performance..

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    Products & Brands

    Major products in this industry
    Strata insurance
    Disaster insurance
    Contents insurance
    Liability insurance
    Examples of brands in this Industry
    CGU
    NRMA Insurance
    SGIC
    SGIO
    Elders Insurance
    GIO
    AAMI
    APIA
    Vero

    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
  • Number of households
  • Natural disasters
  • year bond rate
  • All Ordinaries index

  • Current Performance
  • High levels of claims
  • Rising premiums
  • Weaker investment returns
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Investment returns
  • Industry risks
  • Regulatory changes
  • Changing household composition
  • Table: Home and Contents Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Home and Contents Insurance Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Residential Property Operators
  • Consumers

  • Key Selling Industries
  • Financial Planning and Investment Advice
  • General Insurance
  • Insurance Brokerage

  • Products & Services
  • Contents insurance
  • Disaster insurance
  • Strata insurance
  • Liability insurance
  • Chart: Home and Contents Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Owner-occupants
  • Renters
  • Investors
  • Residential property operators
  • Other
  • Chart: Major Market Segmentation for the Home and Contents 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 Home and Contents Insurance

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Home and Contents 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 Home and Contents 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 Home and Contents 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
    Agents And Distributors
  • Companies who issue and sell insurance policies on behalf of the underwriter.
  • Coverage
  • The range and extent of unforeseen events in which insurers will offer a payout.
  • Underwriting
  • The costs of administering insurance, which include acquisitions, levies and charges.
  • 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 Home and Contents 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 Home and Contents 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 Home and Contents Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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