Market Trends of Australia Life And Non-life Insurance Industry
Motor Vehicle and Household Insurance has the Largest Shares
Motor vehicle and household insurance make up the largest shares, respectively, in Australia's general insurance segment. All legally registered cars require compulsory Third Party (CTP) insurance in Australia. Additionally, many car owners take out comprehensive car insurance to reduce out-of-pocket expenses if involved in an accident. The gross loss ratio of CTP motor vehicle insurance increased significantly in the current year, largely due to a decline in gross written premiums. Extended lockdown periods have also led to many people having to work from home in Australia. Insurers have had to react retrospectively in many cases, as household insurance policies do not usually cover working from home.
Catastrophe Insurance is in High Demand
Aside from changes in insurance trends relating to the pandemic, catastrophe insurance is becoming more relevant. Insurance losses from major weather events, such as bushfires, storms, and floods, have increased claims in recent years. This negative impact on general insurers’ underwriting margins and earnings will likely continue as natural disasters become more commonplace in the country. Policyholders may expect to pay higher premiums as insurers try to compensate for these losses and secure their financial performance for the future.
