The Insurance Council of Australia is the representative body of the general insurance industry in Australia. Our members represent about 95 per cent of total premium income written by private sector general insurers. Insurance Council members, both insurers and reinsurers, are a significant part of the financial services system.
Insurance Council members provide insurance products ranging from those usually purchased by individuals (such as home and contents insurance, travel insurance, motor vehicle insurance) to those purchased by small businesses and larger organisations (such as product and public liability insurance, professional indemnity insurance, commercial property, and directors and officers insurance).
March 2020 Australian Prudential Regulation Authority statistics show that the general insurance industry generates gross written premium of $51 billion a year and has total assets of $133.8 billion. The industry employs about 60,000 people and on average pays out about $169.4 million in claims each working day.
Over the 12 months to March 2020 the industry’s net profit after tax (NPAT) was $1.5 billion – a 56.7 per cent decrease from the prior year’s NPAT of $3.5 billion. The industry’s underwriting result was also $1.5 billion, falling by 47 per cent from $2.8 billion in the prior year.
1. Source: Australian Prudential Regulation Authority (APRA) Quarterly General Insurance Performance Statistics (QGIPS): https://www.apra.gov.au/publications/quarterly-general-insurance-performance-statistics
2. To obtain total private sector insurance industry gross written premium:
a. Table1a sheet of QGIPS, ‘Table 1A General insurers’ financial performance’, Row 8 ‘Gross written premium’, final column, Year-end figure. Please note APRA’s reported figure is in $millions, so this needs to be converted to $billions for the footnote.
3. To obtain total private sector insurance industry total assets:
a. Keystats sheet of QGIPS, Row 24 ‘Total assets ($m)’, final column, Year-end figure. Please note APRA’s reported figure is in $millions, so this needs to be converted to $billions for the footnote.
4. To derive average pay out of claims each working day:
a. Keystats sheet of QGIPS, ‘Table 1a General insurers’ financial performance’, Row 29 ‘Gross incurred claims (current and prior years)’, final column, Year-end figure. Please note APRA’s reported figure is already in $millions.
b. Divide figure from 4(a) by an approximate number of working days in the relevant financial year. For the 2018 calendar year, 250 working days has been used.