GENERAL INSURANCE MARKET TRENDS
The general insurance landscape will undergo significant shifts as
insurers improve profitability and seek growth in highly concentrated
Hypotheses for 2014
• Market concentration in personal lines forces large
general insurers to grow through overseas markets.
• Foreign insurers stealing domestic market share.
• Large insurers will target sub-scale commercial
insurers to build domestic market share.
• Investment returns and catastrophic losses of
2008/09 will require successive years of recovery.
• Premium increases imperative across the industry,
but price competition will be intense.
• Opportunities to release reserves more limited.
• Consumers will be more sophisticated and valuefocused, and more likely to shop around using the
• Product simplicity and consumer choice will be
• Big Four banks increase focus on home and auto
insurance as important revenue contributors.
• Banks increase product manufacturing to capture
• Large insurers launch on-line brands for niche
• On-line sales will drive price competition.
• On-line aggregators become more common.