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GENERAL INSURANCE MARKET TRENDS

Hypotheses for 2014 • Market concentration in personal lines forces large

general insurers to grow through overseas markets. •  Foreign insurers stealing domestic market share. •  Large insurers will target sub-scale commercial

insurers to build domestic market share.

•  Investment returns and catastrophic losses of 2008/09 will require successive years of recovery.

•  Premium increases imperative across the industry, but price competition will be intense.

• Opportunities to release reserves more limited.

The general insurance landscape will undergo significant shifts as insurers improve profitability and seek growth in highly concentrated market

•  Big Four banks increase focus on home and auto insurance as important revenue contributors.

•  Banks increase product manufacturing to capture more margin.

•  Large insurers launch on-line brands for niche consumer segments.

• On-line sales will drive price competition. • On-line aggregators become more common.

• Consumers will be more sophisticated and value-focused, and more likely to shop around using the internet.

•  Product simplicity and consumer choice will be expected.