Download - 2014 Insurance trends Australia
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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.