The insurance council of Australia provides insurance products ranging from those usually purchased by individuals to businesses or organisations. They represent approximately 95 percent 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.
The insurance companies in Australia are being regulated by APRA (Australian Prudential Regulation Authority) was established 26 years ago, they are the independent statutory authority that supervise the banking system and insurance company across Australia. This body is accountable to the Australian Parliament.
In 2019, Australian Prudential Regulation Authority statistics show that the general insurance industry generates gross written premium of $50.2 billion per annum and has total assets of $129.7 billion. The industry employs approximately 60,000 people and on average pays out about $152.3 million in claims each working day.
When they started operation on July 1, 1998, they only had $1.1 trillion assets to manage but today they have saved more than $8.6 trillion worth of assets for depositors in Australia.
They maintain over 1,790 financial institutions, these include: life insurer, friendly societies, general insurer, private health insurer and others.
This body is concerned with supervising and maintaining soundness in financial institutions, so that the society/community will have confidence when it comes to doing business with insurance companies/financial institutions.
Behind this apparent array of insurance providers and products, there are only a small number of companies that actually provide insurance, sometimes referred to as underwriters, some of which offer insurance products directly to the public.
There are four outstanding insurance companies in Australia, which are known for their incredibleness and transparency. These companies has been in existence for quite along time, these four companies account for three-quarters of the general insurance market_
IAG (Insurance Australia Group) 29%
Suncorp 27%
QBE 10%
Allianz 8%
They make up at least 75% of the market. Australia's insurance market can be divided into roughly three components: life insurance, general insurance and health insurance.
These markets are distinct, the larger insurers focus on only one type, although in recent times several of these companies have widened their scope into more general financial services to the general public, and have faced competition from banks and subsidiaries of foreign financial conglomerates. Offering services such as;
•Disability insurance,
•Income protection
• Funeral insurance
These insurance giants are stepping in to fill the gap where people may have otherwise been in need of a personal or signature loan from their financial institution.
There are five top life insurance companies in Australia, these companies have high value and work tirelessly in making their services affordable and available.
•TAL
•AIA
•Zurich
•Resolution Group
•MLC Limited
The insurance council of Australia has the safety of its community at heart, thereby providing a hotline number for the public to be able to contact them to report any insurance frauds they noticed or come across; 1800 734 621. Also the appointment hours are from 9am to 5pm.
Insurance Council Australia has been able to keep the insurance companies and financial institutions in Australia under check and this has also helped in improving the confidence of the public.