Australia: Traditional large insurers losing market share
Source: Asia Insurance Review | Oct 2019
Traditional large players in the insurance market are slowly losing the battle for market share to challenger brands which are also putting pressure on margins for home and car policies.
New research from Macquarie Wealth Management analysts shows Insurance Australia Group (IAG), which has the largest share of Australia’s general insurance market, and rival Suncorp are losing ground in the profitable home and content sector along with the motor vehicle market, according to a report by Sydney Morning Herald. In 2009, IAG and Suncorp controlled about 61% of the home and motor vehicle sectors. This year, the proportion has fallen to 57%.
Macquarie’s data also estimate the top five insurers in Australia accounted for more than 85% of the market 15 years ago but that figure now sits closer to 72%.
“The original challenger brands of Youi, Hollard and Auto + General have grown from no footprint 15 years ago to about 10% of market share,” the report says, noting that new entrants have also come into the market with highly targeted offerings.
“Each insurer who is growing market share is focusing on one distribution channel (or product) and are doing it very well,” the report says. A