The insurance sector’s profits in this period have declined by 48.3 percent to $2.3 billion. Severe natural hazards events at the start of the year, higher reinsurance costs and unfavourable investment results from volatile market conditions contributed to this result. The COVID-19 pandemic then introduced a whole set of new challenges for insurers.
In this year's General Insurance Industry Review report we outline the key events, trends and factors that influenced the performance of the general insurance industry throughout 2020.
Top 10 insurance trends
In the report, we overview the implications of ten key trends which will impact Australian insurance companies in both the short and long term – several of which are technology-related:
1. Regulatory and compliance transformation
2. Simplification and cost optimisation
3. Changing customer expectations
4. Pricing and risk optimisations
5. Technology modernisation
6. Distribution and channel optimisation
8. Mergers and acquisitions
9. IFRS 17 Insurance contracts
10. Climate change
The KPMG General Insurance Insights Dashboard contains a range of interactive charts and graphs presenting the key industry metrics for the past 5 years. The interactive dashboard enables the data to be filtered to view the metrics for a particular year or insurer. It also enables comparison of metrics for an individual insurer to others in the market.
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