Australia Insurance market dominated by Household Insurance Industry: Ken research

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TABLE OF CONTENTS 1.

Asia-Pacific Insurance Industry

1.1.

Industry Introduction

1.2.

Asia-Pacific Insurance Market Size by Direct Written Premium, 2005-2012P

1.3.

Asia-Pacific Insurance Market Segmentation

1.3.1. By Geography, 2005-2012P 1.3.2. By Life and Non Life, 2005-2012P 1.4.

Asia-Pacific Insurance Industry Future Outlook

1.4.1. By Geography, 2013-2016 2.

Australia Insurance Industry

2.1.

Australia Insurance Value Chain

2.2.

Australia Insurance Market Size by Direct Written Premium, FY’2005-FY’2012

3.

Australia Insurance Government Regulations

4.

Australia Life Insurance Market

4.1.

Australia Life Insurance Market Size, FY’2005-FY’2012

4.2.

Australia Life Insurance Market Future Outlook and Projection, FY’2013-FY’2016

5.

Australia Non-Life Insurance Market

5.1.

Australia Non-Life Insurance Market Size, FY’2005-FY’2012

5.2.

Non-Life Insurance Segmentation, FY’2005-FY’2012

5.2.1. Australia Health Insurance Industry 5.2.1.1.

Australia Health Insurance Market Size, FY’2005-FY’2012

5.2.1.2.

Market Share of Major Health Insurers in Australia, FY’2012

5.2.1.3. FY’2016

Australia Health Insurance Market Future Outlook and Projection, FY’2013-

5.2.2. Australia Motor Vehicle Insurance Industry 5.2.2.1.

Australia Motor Vehicle Insurance Market Size, FY’2005-FY’2012 2

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5.2.2.2.

Motor Vehicle Insurance Segmentation, FY’2005-FY’2012

5.2.2.3.

Market Share of Major Motor Vehicle Insurers in Australia, FY’2012

5.2.2.4. Australia Motor Vehicle insurance Market Future Outlook and Projection, FY’2013-FY’2016 5.2.3. Australia Household Insurance Industry 5.2.3.1.

Australia Household Insurance Market Size, FY’2005-FY’2012

5.2.3.2.

Market Share of Major Household Insurers in Australia, FY’2012

5.2.3.3. FY’2016

Australia Household Insurance Market Future Outlook and Projection, FY’2013-

5.2.4. Australia Liability Insurance Industry 5.2.4.1.

Australia Liability Insurance Market Size, FY’2005-FY’2012

5.2.4.2.

Liability Insurance Segmentation, FY’2005-FY’2012

5.2.4.3. FY’2016

Australia Liability insurance Market Future Outlook and Projection, FY’2013-

5.2.5. Australia Fire and ISR Insurance Industry 5.2.5.1.

Australia Fire and ISR Insurance Market Size, FY’2005-FY’2012

5.2.5.2. Australia Fire and ISR Insurance Market Future Outlook and Projection, FY’2013-FY’2016 5.2.5.3.

Market Share of Major Non Life Insurers in Australia, FY’2012

5.3.

Australia Non-Life Insurance Market Future Outlook and Projection, FY’2013-FY’2016

6.

Australia Insurance Industry Trends and Developments

7.

Asia-Pacific Insurance Industry Future Outlook

7.1.

Asia-Pacific Insurance Industry Future Projections

7.2.

By Geography, 2013-2016

8.

Australia Insurance Industry Future Projections, FY’2013-FY’2016

8.1. Cause and Effect Relationship Between Dependent and Independent Factors Prevailing in Australia Insurance Market 9.

Company Profile of Major Players in Australia Life Insurance Industry 3

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10.

Company Profile of Major Players in Australia Non-Life Insurance Industry

10.1.

Suncorp Group

10.1.1. Company Profile 10.1.2. Business Strategies 10.1.3. Financial Performance 10.2.

Insurance Australia Group

10.2.1. Company Profile 10.2.2. Business Strategies 10.2.3. Financial Performance 11.

Australia Insurance Industry Macro-Economic Indicators: Historical and Projections

11.1.

Australia Population, 2005-2016

11.2.

GDP of Australia, 2005-2016

11.3.

Healthcare Expenditure of Australia, 2005-2016

11.4.

Total number of Vehicle in Use in Australia, 2005-2016

12.

Appendix

12.1.

Market Definitions

12.2.

Abbreviations

12.3.

Research Methodology

Data Collection Methods Approach Variables (Dependent and Independent) Multi Factor Based Sensitivity Model Final Conclusion 12.4.

Disclaimer

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LIST OF FIGURES

Figure 1: Asia-Pacific Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P Figure 2: Asia-Pacific Insurance Market Segmentation by Life and non Life on the Basis of Direct Written Premium in Percentage, 2005-2012P Figure 3: Insurance Value Chain Figure 4: Australia Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 5: Australia Life Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 6: Australia Life Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Figure 7: Australia Non Life Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 8: Australia Non life Insurance Market Segmentation by Health, Motor Vehicle, Household, liability, Fire and ISR and Others on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 Figure 9: Australia Health Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 10: Market Share of Major Non Life Insurers on the Basis of Number of Policies in Percentage, FY’2012 Figure 11: Australia Health Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Figure 12: Australia Motor Vehicle Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 13: Australia Motor Vehicle Insurance Market Segmentation by Domestic, CTP and Commercial Motor Vehicle Insurance on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 Figure 14: Market Share of Major Motor Vehicle Insurers on the Basis of Direct Written Premium in Percentage, FY’2012 5

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Figure 15: Australia Household Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 16: Market Share of Major Household Insurers on the Basis of Direct Written Premium in Percentage, FY’2012 Figure 17: Australia Household Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Figure 18: Australia Liability Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 19: Australia Liability Insurance Market Segmentation by Public and Product Liability, Employers Liability and Professional Indemnity Insurance on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 Figure 20: Australia Fire and ISR Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 21: Australia Fire and ISR Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Figure 22: Market Share of Major Non Life Insurers on the Basis of Direct Written Premium in Percentage, FY’2012 Figure 23: Australia Non life Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Figure 24: Australia Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Figure 25: Australia Non-Life Insurance Gross Written Premium of Suncrop Group in USD Million, FY’2011-FY’2012 Figure 26: Australia Non-Life Insurance Gross Written Premium of Insurance Australia Group in USD Million, FY’2005-FY’2012 Figure 26: Australia Population in Million, 2005-2016 Figure 27: GDP of Australia in USD Million, 2005-2016 Figure 28: Healthcare Expenditure of Australia in USD Million, 2005-2016 Figure 29: Total Number of Vehicle in Use in Australia in Million, 2005-2016

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LIST OF TABLES

Table 1: Asia-Pacific Insurance Market Segmentation by Countries on the Basis of Direct Written Premium in USD Billion, 2005-2012P Table 2: Asia-Pacific Insurance Market Segmentation by Life and Non Life on the Basis of Direct Written Premium in USD Billion, 2005-2012P Table 3: Asia-Pacific Insurance Market Projections by Countries on the Basis of Direct Written Premium in USD Million, 2013-2016 Table 3: Market Share of Major Non Life Insurers on the Basis of Number of Policies in Thousand Units, FY’2012 Table 4: Australia Motor Vehicle Insurance Market Segmentation by Domestic, CTP and Commercial Motor Vehicle Insurance on the Basis of Direct Written Premium in USD Million, 2005-2012 Table 6: Market Share of Major Motor Vehicle Insurers on the Basis of Direct Written Premium in USD Million, FY’2012 Table 7: Australia Motor Vehicle Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Table 8: Market Share of Major Household Insurers on the Basis of Direct Written Premium in USD Million, FY’2012 Table 9: Australia Liability Insurance Market Segmentation by Public and Product Liability, Employers Liability and Professional Indemnity Insurance on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Table 10: Australia Liability Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Table 11: Market Share of Major Non Life Insurers on the Basis of Direct Written Premium in USD Million, FY’2012 Table 12: Asia-Pacific Insurance Market Projections by Countries on the Basis of Direct Written Premium in USD Million, 2013-2016 Table 13: Cause and Effect Relationship Analysis between Industry Factors and Expected Industry Prospects of Australia Insurance Market 7

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Table 14: Company Profile of Major Players in Australia Life Insurance Industry, FY’2012 Table 15: Correlation Matrix of Australia Insurance Industry Table 16: Regression Coefficients Output of Australia Insurance Industry

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ASIA-PACIFIC INSURANCE MARKET SIZE BY DIRECT WRITTEN PREMIUM, 2005-2012P

The insurance market in Asia-Pacific region has grown remarkably over the past few years due to the growth in the emerging markets such as China, Japan, India, Australia, Taiwan and South Korea. The countries in the Asia-Pacific region are at different stages of economic development unlike the European countries and the US which has created significant opportunities for the insurers in the region in order to serve the financial needs of the customers. The market in the region has grown at a CAGR of 11.9% from USD ~ million in 2005 to USD ~million in 2012‌ Figure: Asia-Pacific Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P 16,00,000.0 14,00,000.0

USD Million

12,00,000.0 10,00,000.0 8,00,000.0 6,00,000.0 4,00,000.0 2,00,000.0 0.0 2005

2006

2007

2008

2009

2010

2011

2012P

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ASIA-PACIFIC INSURANCE MARKET SEGMENTATION

BY GEOGRAPHY, 2005-2012P

Asia-Pacific insurance industry is majorly contributed by 6 major countries such as Japan, China, South Korea, Taiwan, India and Australia with the share of ~% in 2012. Japan insurance market is the second largest in the world with the contribution of more than ~% in 2012…. The China insurance industry is China insurance industry is one of one of the predominant markets in the insurance industry the predominant markets in the insurance industry in the Asiain the Asia-Pacific region with a contribution of ~% of the Pacific region with a contribution direct written premium in the region in 2012… of ~% of the direct written premium in the region in 2012.

South Korea is the third largest market with a contribution of ~% in 2012. The country insurance sector is more complicated with limited growth opportunities in comparison with the growing market in the region such as China and India… Table: Asia-Pacific Insurance Market Segmentation by Countries on the Basis of Direct Written Premium in USD Billion, 2005-2012P Countries

2005

2006

2007

2008

2009

2010

2011

2012P

Japan China South Korea Taiwan India Australia Hong Kong Singapore Thailand Malaysia Indonesia

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New Zealand Philippines Vietnam Pakistan Kazakhstan Bangladesh Sri Lanka Total

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AUSTRALIA INSURANCE INDUSTRY

AUSTRALIA INSURANCE MARKET SIZE BY DIRECT WRITTEN PREMIUM, FY’2005-FY’2012

….In FY’2012, there are ~ licensed insurance companies operating in Australia of which ~ were direct insurers and ~ were reinsurers…. The insurance market of Australia has experienced decline in the growth rate from ~% in FY’2011 to ~% in FY’2012... The industry has also experienced the decline in the solvency margin ratio from ~% in 2009 to ~% in 2012… Figure: Australia Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 1,20,000.0

USD Million

1,00,000.0 80,000.0 60,000.0 40,000.0 20,000.0 0.0 FY'2005

FY'2006

FY'2007

FY'2008

FY'2009

FY'2010

FY'2011

FY'2012

Note: FY ending- 30st June Life Insurance is in Net Written Premium Non-Life Insurance is in Gross Written Premium

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AUSTRALIA LIFE INSURANCE MARKET

AUSTRALIA LIFE INSURANCE MARKET FUTURE OUTLOOK AND PROJECTION, FY’2013-FY’2016

Under the base case scenario analysis, the life insurance market of Australia is expected to grow at a CAGR of 5.9% in the next four years and the market is predicted to record direct written premium of USD ~ million in FY’2016… In the worst case scenario analysis, the life insurance market is predicted to record direct written premium of USD ~ million in FY’2016… The best case scenario analysis assumes that the market is expected to grow at a strong CAGR of ~% from FY’2013-FY’2016…

Figure: Australia Life Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 70,000.0 60,000.0

USD Million

50,000.0 40,000.0 30,000.0 20,000.0 10,000.0 0.0 FY'2013 Worst Case

FY'2014

FY'2015 Base Case

FY'2016 Best Case

Note: FY ending- 30st June Life Insurance is in Net Written Premium

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AUSTRALIA NON-LIFE INSURANCE MARKET

AUSTRALIA NON-LIFE INSURANCE MARKET SIZE, FY’2005FY’2012

The general insurance industry in Australia has experienced a growth of ~% with the direct written premium of USD ~ million in FY’2012 compared to USD ~ million in FY’2011. The growth in the market is primarily driven by an increase in the household and in the fire and industrial special risk class by ~% and ~% respectively in FY’2012. In FY’2012, the industry’s gross incurred claim has reached to AUD ~ billion in comparison to AUD ~ billion in FY’2011 due to the reduced gross claims arising from the lower incidence and impact of natural disaster in the year. Figure: Australia Non Life Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 60,000.0

USD Million

50,000.0 40,000.0 30,000.0 20,000.0 10,000.0 0.0 FY'2005

FY'2006

FY'2007

FY'2008

FY'2009

FY'2010

FY'2011

FY'2012

Note: FY ending- 30st June Non-Life Insurance is in Gross Written Premium

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NON-LIFE INSURANCE SEGMENTATION, FY’2005-FY’2012

The Australian non life insurance industry is segmented into health insurance, automobile insurance, household insurance, liability insurance, fire and industrial special risk insurance and others. The health insurance segment is the leading contributor in the general insurance industry with the share of ~% and the direct written premium of USD 17,314.6 million in FY’2012. The motor insurance industry is the second largest contributor in the general insurance industry of Australia contributing around ~% in FY’2012. The motor insurance industry in the country is further segmented into domestic, commercial and third party motor vehicle insurance…

Figure: Australia Non life Insurance Market Segmentation by Health, Motor Vehicle, Household, liability, Fire and ISR and Others on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 100.0% 90.0% 80.0% 70.0%

In Percentage %

60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% FY'2005 Others

FY'2006

FY'2007

Fire and ISR

FY'2008

Liability

FY'2009

Household

FY'2010

FY'2011

Motor Vehicle

FY'2012 Health

Note: FY ending- 30st June Non-Life Insurance is in Gross Written Premium

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AUSTRALIA HEALTH INSURANCE INDUSTRY

MARKET SHARE OF MAJOR HEALTH INSURERS IN AUSTRALIA, FY’2012

The health insurance market in Australia is a concentrated market with the top five players such as Medibank, Bupa, Hospital Contribution Fund (HCF), HBF and NIB has contributed around ~% in FY’2012. Medibank is the leading provider of health insurance service in the country with the share of ~% and number of policies is ~ thousand in FY’2012. Figure: Market Share of Major Non Life Insurers on the Basis of Number of Policies in Percentage, FY’2012

Medibank

Bupa

Hospital Contribution Fund (HCF) HBF

NIB

Others

Note: FY ending- 30st June

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Table: Market Share of Major Non Life Insurers on the Basis of Number of Policies in Thousand Units, FY’2012 Players

FY’2012

Medibank Bupa Hospital Contribution Fund (HCF) HBF NIB Others Total Note: FY ending- 30st June

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AUSTRALIA HOUSEHOLD INSURANCE INDUSTRY

AUSTRALIA HOUSEHOLD INSURANCE MARKET FUTURE OUTLOOK AND PROJECTION, FY’2013-FY’2016

The Australian household insurance is expected to grow at a CAGR of 13.1% in the next four years and is predicted to record direct written premium of USD ~ million in FY’2014… Figure: Australia Household Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 14,000.0 12,000.0 USD Million

10,000.0 8,000.0 6,000.0 4,000.0 2,000.0 0.0 FY'2013

FY'2014

FY'2015

FY'2016

Note: FY ending- 30st June Household Insurance is in Gross Written Premium

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AUSTRALIA INSURANCE INDUSTRY TRENDS AND DEVELOPMENTS

RISING SALES OF ANNUITY INSURANCE THROUGH GOVERNMENT SUPPORT

In Australia, Superannuation Guarantee (SG) is an officially compulsory made by employers on the behalf of their employees...

ASIA-PACIFIC INSURANCE INDUSTRY FUTURE OUTLOOK

…Overall, the market of the Asia-Pacific insurance is expected to grow at a CAGR of 11.2% from 2013-2016. The market in the near future is expected to witness consolidation and higher competition level with the entrance of more global players in the market…

ASIA-PACIFIC INSURANCE INDUSTRY FUTURE PROJECTIONS

BY GEOGRAPHY, 2013-2016

The Asia-Pacific Insurance industry is expected to grow at a CAGR of 11.2% from 2013-2016 on account of the rising population in the emerging markets of Asia such as India and China. It is anticipated that the total direct written premium of the insurance products will increase to USD ~ million in 2016 from USD ~ million in 2012.

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Table: Asia-Pacific Insurance Market Projections by Countries on the Basis of Direct Written Premium in USD Million, 2013-2016 Countries

2013

2014

2015

2016

Japan China South Korea Taiwan India Australia Hong Kong Singapore Thailand Malaysia Indonesia New Zealand Philippines Vietnam Pakistan Kazakhstan Bangladesh Sri Lanka Total

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AUSTRALIA INSURANCE INDUSTRY FUTURE PROJECTIONS, FY’2013-FY’2016

….Under the base case scenario analysis, the Australian insurance market is anticipated to grow at a CAGR of 9.1% from FY’2013-FY’2016 and is predicted to record direct written premium of USD ~ million in FY’2015. The worst/conservative case scenario analysis assumes that the market will grow at a CAGR of 2.0% in the next four years… The best case scenario analysis predicts that the industry will grow at a phenomenal CAGR of 12.1% from FY’2013-FY’2016 and is expected to register direct written premium of USD ~ million in FY’2016...

Figure: Australia Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 1,80,000.0 1,60,000.0 1,40,000.0 USD Million

1,20,000.0 1,00,000.0 80,000.0 60,000.0 40,000.0 20,000.0 0.0 FY'2013 Worst Case

FY'2014

FY'2015 Base Case

FY'2016 Best Case

Note: FY ending- 30st June Life Insurance is in Net Written Premium Non-Life Insurance is in Gross Written Premium

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CAUSE AND EFFECT RELATIONSHIP BETWEEN DEPENDENT AND INDEPENDENT FACTORS PREVAILING IN AUSTRALIA INSURANCE MARKET

Table: Cause and Effect Relationship Analysis between Industry Factors and Expected Industry Prospects of Australia Insurance Market Industry Factors Strict Government Regulations and Support

Increasing Population

Increasing Consumer Spending Intensifying Competition

Market Impact

Comments  Cause:  Positive Effect:

 Cause:  Effect:.  Cause:  Effect:.  Cause:  Positive Effect:  Negative Effect:

DISCLAIMER

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