Reference no: EM132651829 , Length: word count:2000
MB 113 Economics - Wentworth Institute
Assessment - Individual Report
The General Insurance industry in Australia provides protection for individuals, households and businesses from financial loss associated with events such as car accidents, floods, break-ins and malpractice. The outlook for the industry is that revenue is projected to rise over the next five years. Anticipated economic recovery from COVID-19 recession is likely to yield steady demand for general insurance, providing healthy premium revenue increases for industry operators over the period (IBISWorld). The industry includes general insurers and reinsurers.
There are many companies offering insurance policies in the Australian market. However, many are underwritten by a limited number of insurers operating under various brand names The companies holding the largest market share in the General Insurance in Australia industry include Insurance Australia Group Limited, Suncorp Group Limited, Allianz Australia Limited and QBE Insurance Group Limited. Between them, the four largest insurance companies in Australia offer 30 different brands between them (Yeates, C, 2018).
Requirement:
Answer the following questions regarding the Insurance industry. Present you answers as a report of no more than 2000 words.
The report should have an executive summary, an introduction, a body, and a conclusion. Ensure that the report is referenced correctly, and if you are including diagrams, make sure that all diagrams labelled. Any late assignments will incur a 10% deduction per day. No assignment will be accepted after 7 days.
1. Analyse and evaluate the market structure of the insurance company industry. In your analysis, determine whether the current market is concentrated or not. In your discussion, use economic tools or models to make this decision (eg HHI etc)
2. In KPMG's General Insurance Industry Review 2019 report, it was stated that Insurance profit for the year ended 30 June 2019 was down 12 percent to $4,399 million, a significant reduction on the previous two year's annual results. What are some of the economic issues that may have affected the insurance industry that has affected their result?
3. Referring to figure 2 below, do you think the current market structure has been beneficial to consumers? What recommendations can you make to governments/regulators in regards to leveling out the playing field?
Attachment:- Economics.rar