Australia's Insurance Industry – Export and Investment OpportunitiesData Alert: 16 December 2008Australia’s insurance industry has continued to enjoy solid premium growth and its profitability has remained relatively sound amid the current global financial turmoil. The impressive outcome has been primarily attributable to Australia’s overall healthy financial system, sound economic fundamentals, sophisticated financial infrastructure, and strong regulatory regime. Australia now ranks 12th globally in terms of premiums and 4th in the Asia-Pacific region, according to Swiss Re, World Insurance in 2007. A mature industry, it is innovative, well-regulated, and backed by strong legal, accounting, education, human resource and IT capacities. Australia’s insurance capability helps underpin the country’s financial services industry, strengthening its position as a financial services hub in the Asia-Pacific region. While the Australian market is generally well serviced, there is evidence of underinsurance and non-insurance in certain segments of the domestic market and niche opportunities exist for new entrants or expansion. Opportunities also exist for insurers to leverage new distribution channels and product innovation. There is also a compelling case for global and domestic insurers to use Australia as a base within the region for strategy, analytics and actuarial modelling. |