Research one

of developed
markets and
its
commercial
insurance
regulations
 Australian Insurance
GROUP 3 Market
1. Lê Ngọc Ánh
2. Nguyễn Thị Dung
3. Phùng Thu Hoài
4. Nguyễn Ngọc Lan
5. Nguyễn Khánh
Linh
Australian Insurance Market
01 Overview

02 Life and non-life insurance market

03 Regulation

04 Development
OVERVIEW
 Overview
Some characteristics of insurance market

Diversity
• Life Insurance
01 • Non-life Insurance
• Health Insurance
One Distinctive point
Most larger insurers
02 focusing on only one
Filling the gap type

03 With services such as

disability insurance,
v
income protection and
even funeral insurance
 Overview
Some information about insurance companies

• There are apparently many companies offering QBE

insurance policies in the Australian market, but many

are in fact underwritten by a limited number of
insurers operating under various brand names.

• Behind this apparent array of insurance providers

and products, there are only a small number of
companies that actually provide insurance, Allianz

sometimes referred to as underwriters, some of Insurance Australia

Group (IAG)
which offer insurance products directly to the public
Suncorp Group
 Overview
Some information about insurance companies
Four companies account for three-quarters of the general insurance market

Australian insurance market

26% 29% Australia Group (IAG)

Suncorp Group
QBE
Allianz
8% Other Company

10%
27%
Life insurance
Non-life
insurance market
Life Insurance Market
Who is incharge ?

The Australian Prudential

Regulation Authority (APRA)
regulates life insurance companies
registered under the Life Insurance
Act in Australia. As at 30 June
2018, there were 30 life insurers
being monitored by APRA.
 Life Insurance Market
Some information about life insurance market

The market for life insurance in Australia is

worth about $44 billion (according to the
Age, 15 September 2018, “Flogging of
worthless life insurance policies laid bare”.
Life insurance in Australia is sold through
intermediaries (such as brokers) as well as
directly by the insurer to the public. ASIC
and the Hayne Royal Commission have
highlighted the high-pressure telephone
selling practices and poor product design of
some direct life insurance companies.
 Life Insurance Market
Some Life Insurance Companies

Other
Zurich Australia
The largest 10 life MetLife Insurance
5%
4% 1%
TAL Life
Suncorp Life 19%
insurance companies 5%

(by total risk premium

Westpac Life
inflows in the 12 months 8%

to 30 September
10% 2018)
accounted for 95.5% of CommInsure AIA Australia
8% 16%
the Australian
20% market

In 2019, when the70%

last of these deals is OnePath Life
completed over 60% of the Australian 10%
MLC Life
12%
life insurance market will be controlled AMP Life
11%
by three companies - AIA, TAL and
Zurich.
 Non-life Insurance Market
Diversify non-life insurance

Property insurance such as home and

contents insurance, travel insurance,
and comprehensive motor vehicle
insurance

Division
Liability insurance such as compulsory
third party (CTP) motor insurance,
worker's compensation, professional
indemnity insurance and public liability
insurance, business insurance;
 Non-life Insurance Market
Some non-life insurance companies

Hollard QBE
Insurance Suncorp
Youi Insurance
Group
IAG

General
Insurance
Group
Auto and general Allianz Australia
.
Market
REGULATION
Regulation
• The prudential aspects of general, life and
health insurance (solvency etc.) are regulated
by APRA.
• Matters relating to advice or disclosure of
insurance products sold are regulated by the
Australian Securities and Investments
Commission (ASIC).
• The Australian Competition and Consumer
Commission (ACCC) also has a regulatory
role with respect to competition law.
Regulation
• In certain states, various bodies also have
powers in regulating certain types of
statutory insurance.
• For example, in New South Wales the
State Insurance Regulatory Authority
regulates Compulsory Third Party motor
liability insurance.
• In many cases these bodies have powers
regarding premium rating and reinsurance
rules.
 Regulation
The primary federal legislation
Life Insurance Insurance Corporations Health
Act Insurance Act Contracts Act Act Insurance Act

1995 1973 1984 2001 2007

Consumer (especially Ch 7) Health insurance

Life insurance General
insurance protection in consumer
prudential prudential regulation
prudential protection in
respect of respect of and consumer
regulation regulation
insurance policies insurance policies
protection
 Regulation
Other legislation which affects the industry

A New Tax System (Goods

and Services Tax) Act 1999
(taxation rules in respect to
insurance e.g., Division 78)

Privacy Act 1988 (The

National Privacy Principles)
 Regulation
Futher regulations

The General Insurance

Code of Practice which all
general insurer signatories
agree to self-regulate
under.
Payment Card Industry
Data Security Standard
(PCI DSS)
DEVELOPMENT
Life and non-life insurance
 Development
Some data about Australian premiums Insurance

The graph gives

The total gross premiums development data
information about the
life and non-life gross
premiums 78.8
74.15 72.34
development data of 69.99
Australian insurance 61.28

Billions
market from 2015 to
2019. Overall, there
was a gradual
decrease in the total
premiums over the 5-
year period 2015 2016 2017 2018 2019
Thank you
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