General Insurance Industry Review 2014

General Insurance Industry Review 2014

In the 12 months to 30 June 2014, Australia’s insurers have delivered record post-GFC profit results, driven by earnings from increasing premiums, a quieter weather event period and a focus on expense discipline. However, significant challenges lie ahead as the rate of growth in premium increases slows due to increasing competitive pressures as online insurers, aggregators, and non-traditional players continue to emerge and gain market share.

Partner and ASPAC Head of Insurance Accounting

KPMG Australia

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General Insurance Industry Review 2014

KPMG's 2014 General Insurance Industry Review includes the financial results of general insurers that represent a significant part of the Australian market.

Key findings

  • Overall profits have increased 8.3 percent during the year to $4,958 million, up from $4,580 million in 2013.
  • With the growth in earned premiums and a stable claims environment, the current year loss ratio of 61.6 percent is at its lowest level in the past 5 years.
  • Several insurers have announced a strategic focus on underwriting discipline with respect to pricing and risk selection, focusing on higher margin business with lower claim frequencies.
  • The industry's capital coverage is in one of the strongest positions it has ever been at 1.9 times the APRA minimum requirement, compared to 1.82 times in 2013.
  • Expense reduction and improving the customer experience continue to be key focus areas as insurers focus on technological transformations to streamline policy and claims management systems.

General Insurance Industry Review

KPMG's annual General Insurance Industry Review series includes financial results of general insurers in the Australian market.

 
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