GlobalData’s report, Australia General Insurance: Key Trends and Opportunities to 2025, reveals that the general insurance industry in the country is expected to reach US$67 billion in 2025 – a surprising feat considering the tumultuous year that Australia (and indeed, the rest of the world) has seen.
But Deblina Mitra, Insurance Analyst at GlobalData, notes that this positive outlook is thanks in part to the country’s effective management of the outbreak: “The lockdown restrictions due to the Covid-19 pandemic and extreme bushfires affected Australia’s economic growth in the first half of 2020. Effective management of the outbreak, government’s fiscal support and faster adoption of innovative business models helped improve economy with most businesses reopening in September 2020.”
The positive impact was reflected in income and underwriting premium growth of 6.1 per cent in the July to September quarter. In addition, high losses from wildfires and other catastrophic events pushed premiums higher. Catastrophe-linked insurance lines reported double-digit increment in prices since Q4 2017, reported GlobalData – a growth that is expected to continue in 2021.
A new focus on domestic travel insurance and cyberinsurance
“The reopening of several economic sectors will aid demand for general insurance in 2021. Cyber-security, mental health wellbeing and domestic travel are expected to be key focus areas for insurers over the next five years,” said Mitra. “As digitalisation picked up pace in 2020, it also increased exposure to cybercrimes thereby driving demand for cyberinsurance.”
In the article, ‘a brief history of insurtech’, ITIJ looks at how insurers are increasingly working alongside insurtech firms to increase their improve their digital consumer offerings.