Australia Insurance Report

Published 08 July 2015

  • 71 pages
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  • Includes 3 free updated quarterly reports
$1,295.00
Australia Insurance Report

BMI View: The enormous strengths of Australia ' s insurance sector remain obvious. In USD terms, premiums will likely fall quite sharply in 2015 because of the weakness of the AUD. However, in local currency terms, growth should be sustained by the ongoing expansion of the superannuation (super) funds (for the life segment) and continued innovation (in the non-life segment). Both major segments of Australia ' s insurance sector have long been open to competition from foreign majors. In both segments, virtually all companies have scale, capacity to develop and distribute innovative products, access to capital and reinsurance, multi-channel distribution strategies an d, in many cases, strong brands and we expect this to continue going forwards.

Arguably the single most important characteristic of Australia's life segment is the country's massive superannuation (super) system, which has total assets under management (AUM) of about AUD2,000bn. The super system provides retirement savings solutions (usually by way of a lump sum payment) that in other countries might be delivered by the life insurers. The life insurers therefore tend to focus on risk products. The larger super funds are important customers of group life solutions. Therefore, the growth over time of the super system should underpin a measured rise in life premiums. Sales of annuities will likely continue to rise quickly. Unfortunately, the long-term trend in life insurance lapse rates has been upwards (in spite of the fall in the last year or so). Further, profitability in many life lines has been low. This suggests to us that the number of life insurers is more likely to fall than rise over time.

In the non-life segment, a recent challenge has been the downwards pressure on prices and rates for commercial lines globally. However, the ongoing growth in the economy, and development of new products - sometimes as a result of initiatives by the insurers and sometimes as a result of initiatives from...

BMI Industry View
7
SWOT
9
Political
11
Economic
12
Operational Risk
13
Industry Forecast
15
Life Premiums Forecast
15
Life Premiums
15
Table: Gross Life Premiums Written (Australia 2012-2019)
17
Life Claims
17
Table: Life Insurance Claims (Australia 2007-2014)
18
Life Insurers' Assets
18
Table: Assets (Australia 2007-2014)
18
Life Insurance Drivers
19
Table: Life Expectancy by Gender (Australia 2012-2019)
19
Table: Demographic Breakdown (Australia 2012-2019)
20
Non-Life Premiums Forecast
21
Non-Life Premiums
21
Table: Gross Non-Life Premiums Written (Australia 2012-2019)
23
Table: Net Non-Life Premiums Written (Australia 2012-2019)
23
Non-Life Claims
24
Table: Non-Life Insurance Claims (Australia 2007-2014)
24
Table: Non-Life Insurance Claims by Line (Australia 2007-2014)
25
Non-Life Insurers' Assets
25
Table: Assets (Australia 2007-2014)
26
Non-Life Sub-Sector Forecast
27
Table: Non-Life % Breakdown (Australia 2012-2019)
29
Motor Vehicle Insurance
29
Table: Motor Vehicle Insurance (Australia 2012-2019)
30
Table: Insurance Key Drivers, Autos (Australia 2012-2019)
30
Transport Insurance
31
Table: Transport Insurance (Australia 2012-2019)
32
Table: Insurance Key Drivers, Freight Tonnage (Australia 2012-2019)
33
Property Insurance
33
Table: Property Insurance (Australia 2012-2019)
34
Health Insurance
34
Table: Health Insurance (Australia 2012-2019)
35
Table: Insurance Key Drivers, Private Health Expenditure (Australia 2012-2019)
36
Personal Accident Insurance
36
Table: Personal Accident Insurance (Australia 2012-2019)
37
General Liability Insurance
37
Table: General Liability Insurance (Australia 2012-2019)
37
Credit Insurance
38
Table: Credit/Financial Guarantee Insurance (Australia 2012-2019)
38
Insurance Risk/Reward Index
39
Asia Pacific Industry Risk/Reward Index
39
Table: Asia Pacific Insurance Risk/Reward Index
40
Market Overview
41
Life Market Overview
41
The Product Offering
41
The Competitive Landscape
42
Non-Life Market Overview
44
The Product Offering
44
The Competitive Landscape
45
Table: Non-Life Market Share (%), 2005-2013
47
Company Profile
49
AMP Limited
49
Comminsure/CFSGAM
52
Insurance Australia Group
54
QBE Insurance Group
56
Suncorp Group Limited
58
Demographic Forecast
60
Table: Population Headline Indicators (Australia 1990-2025)
61
Table: Key Population Ratios (Australia 1990-2025)
61
Table: Urban/Rural Population & Life Expectancy (Australia 1990-2025)
62
Table: Population By Age Group (Australia 1990-2025)
62
Table: Population By Age Group % (Australia 1990-2025)
63
Methodology
65
Industry Forecast Methodology
65
Risk/Reward Index Methodology
68
Table: Indicators
70
Table: Weighting of Indicators
71

The Australia Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.

BMI's Australia Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Australian insurance industry.

Key Benefits

  • Benchmark BMI's independent insurance industry forecasts for Australia to test other views - a key input for successful budgeting and strategic business planning in Australia's insurance market.
  • Target business opportunities and risks in Australia through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

  • Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
  • Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).

BMI’s Insurance Risk Reward Index

BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Growth Drivers & Risk Management Projections

Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:

  • Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
  • Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
  • Motor: Fleet size by type of vehicle % change y-o-y.
  • Epidemiology: Disease Adjusted Life Years and private health expenditure.

Market Overview & Rankings

Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.

Sources

The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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