The Australian insurance market can be divided into about three components: life insurance, general insurance, and health insurance. These markets are quite different, with most larger insurance companies focusing on only one type, although lately some of these companies have expanded their coverage to more general financial services, and have faced competition from banks and subsidiaries from foreign financial conglomerates. With services like disability insurance, income protection, and even funeral insurance, the insurance giant is stepping in to fill the gap where others may need personal loans or signatures from their financial institutions.
There seem to be many companies offering insurance policies in the Australian market, but many are actually borne by a small number of insurance companies operating under a large number of brand names.
Video Insurance in Australia
Type of insurance
Life insurance
Life insurance products sold in Australia include term life insurance and disability income insurance. Australian insurance is not uncommon in providing the same amount of Fixed Disability Insurance. Life insurance companies also sell superannuation investment products. Life insurance in Australia is sold through intermediaries (such as brokers) and also directly to consumers, even Australia is one of the leading countries in the sale of life insurance through direct channels.
Life insurance
Life insurance companies operating in Australia include:
- AIA Australia, a subsidiary of Hong Kong-based AIA Group, the largest listed pan-Asian life insurer group.
- AAMI Life, a brand and a subsidiary of Suncorp Group since 2007. Its headquarters are in Brisbane, Queensland.
- AMP Limited, an old Australian company, which has been demotualized and is now listed on the Australian Stock Exchange.
- AXA, since March 30, 2011, AXA Asia Pacific Holdings Limited and all its subsidiaries in Australia and New Zealand are members of the AMP Group, formerly members of the Global AXA Group.
- Asteron Life, a brand and a subsidiary of Suncorp Group.
- NRMA Insurance, the Australian Insurance Group brand.
- Allianz Australia, part of Allianz, the largest insurance company in the world, with headquarters in Munich, Germany.
- GIO Life
- MLC, a subsidiary of National Australia Bank.
- Macquarie Life
- OnePath, a subsidiary of ANZ Bank.
- Australian Real Insurance, Brands and Representatives from Hollard Group, a privately owned insurance group based in South Africa.
- TAL (formerly Tower Australia), a subsidiary of Dai-ichi Life, with headquarters in Tokyo, Japan.
- Zurich Australia, part of Zurich Insurance Group, global insurance company, with headquarters in ZÃÆ'¼rich, Switzerland.
In addition, life insurance is also sold by friendly people, credit unions, health funds and major retailers such as Coles Supermarket and Woolworths Limited.
General insurance
General insurance products sold in the Australian market can be roughly divided into two classes:
- Liability insurance such as compulsory Third Party (CTP) vehicle insurance, workers compensation, professional indemnity insurance and public liability insurance, business insurance;
- Property insurance such as Home and Travel insurance, travel insurance, and comprehensive motor insurance
Certain types of insurance, such as CTP and workers compensation, are legislation (ie required by law), and can vary greatly by country.
General insurance
Major public insurers include:
- Insurance Australia Group (IAG) markets its products under brands including NRMA, RACV, CGU, SGIO, and Buzz.
- Suncorp markets its products under brands including AAMI, GIO, APIA, Mobil Only, Bingle, Vero, InsureMyRide, Shannons, CIL, and Terri Scheer.
- QBE Insurance
- Auto & amp; General markets its products under brands including Budget Direct, Australia Post, Virgin Money, Compare Market and they cover home and car insurance from 1Cover.
- Allianz Australia (brand includes: Club Marine and Hunter Premium Funding, and they cover travel insurance from 1Cover)
- Hollard Insurance, markets its policies through a number of brands including Real Insurance, and Guardian. It also sells policies through agents such as Woolworths, Australian Seniors Insurance, Medibank, and others.
Previous insurance includes:
- Promina Group merged with Suncorp in 2007
- SGIO and SGIC are purchased by IAG
- HIH Insurance fell in 2001
- MMI was taken over by Allianz in 1998.
Health insurance
The Australian Government provides basic universal health protection through the Medicare scheme. Individuals and families may take health insurance for services not covered by Medicare or for services provided in private hospitals.
Australia's tax system encourages upper middle-income people to take out private health insurance. While most taxpayers pay 2% of Medicare fees, an additional 1% to 1.5% Medicare Levy Surcharge is paid by high-income taxpayers who do not take out private health insurance.
Maps Insurance in Australia
Industrial structure
Life insurance companies have traditionally been joint companies, but in the 1980s and 1990s many of them were demutualized and with some large exceptions owned by banks. The remaining large insurance companies have become "financial services" organizations and now earn most of their income from superannuation investment products. There are four main distribution channels for life insurance, including group insurance, bank insurance, IFA and direct channels (mainly through TV).
General Insurers have a more diverse ownership structure, with independent insurance more independent (although some life insurance companies have general insurance companies).
Most health insurance is still mutual. An important exception is Medibank Private, Australia's largest private health insurer, owned by the Australian Government, but privatized in 2014-15.
Rule
Precautionary aspects of general insurance, life and health (solvency, etc.) are governed by the Australian Prudential Regulation Authority (APRA). Matters relating to the 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 have a regulatory role in relation to competition law.
In certain countries, various bodies also have the power to regulate certain types of compulsory insurance. For example, in New South Wales, the Motor Accident Authority regulates obligatory Third Party motorcycle insurance obligations. In many cases these bodies have strengths regarding premium ratings and reinsurance rules.
The main federal legislation is:
- 1995 Life Insurance Act (Prudential Life Insurance Regulations)
- Insurance Act 1973 (Prudential General Insurance Regulations)
- Health Insurance Act 2007 (Prudential regulation of health insurance and consumer protection)
- Corporation Act 2001 ((especially Ch 7) consumer protection in terms of insurance policy)
- Insurance Contract Act 1984 (consumer protection in terms of insurance policy)
Other rules affecting the industry include:
- Nex Tax System Law (Goods and Services Tax) 1999 (Tax arrangements pertaining to insurance eg Division 78)
- Privacy Act 1988 (National Privacy Principles)
Further regulations include:
- The General Insurance Code of Ethics in which all general insurance insurers agree to govern themselves under.
- Payment Card Industry Data Standard (PCI DSS)
Industry body
Source of the article : Wikipedia
0 Comments