Tower Australia

Competitive Position

TOWER Australia is number 4 in the Australian life insurance market with an overall market share of 11% of in-force premium at 31 March 2008. We have a 10% market share in the retail life insurance sector and a 13% market share in the group life insurance sector.


Australian Life Insurance Market

CONSTANT CHANGE AND OPPORTUNITY IN THE AUSTRALIAN LIFE INSURANCE MARKET

The past three years have seen the evolution of the life insurance sector into a modern, fast growing and changing industry. Innovation and change have set, and continue to set, the competitive tone of the market. As consumer needs and distribution patterns have changed, so too has the shape of the competitive landscape.

Most recently, superannuation has seen dramatic strategic shifts and accelerated growth through legislative change. Now the life insurance industry is emerging in its own right and evolving quickly to meet the opportunities that have arisen from the untapped and increased protection needs of consumers.

While the life insurance industry has grown at over 10% for the past ten plus years, the reality is the financial protection needs of Australians have grown at a faster rate and therefore widened the ‘underinsurance’ gap.

The industry must continue its shift toward consumer marketing with a focus on informing and educating people on the benefits of life insurance cover. The three major themes that are receiving life insurance industry attention in 2008 are:

  • building awareness of protection needs;
  • engaging Government in a partnership to help address this important social policy issue; and
  • looking to simplify life insurance and strip away its complexity.

It is clear those in the market who will gain the greatest relative success going forward will be those who bring fresh consumer and distributor focused ideas and energies into their business models and meet consumer needs. TOWER Australia with its business focus on the life insurance sector, its diversified distribution approach and new technology tools is well placed to lead the market and grow successfully.


LIFE INSURANCE MARKET FORECAST TO TREBLE OVER THE NEXT 10 YEARS

Recent research by DEXX&R predicts that the Australian life insurance market could treble in size over the next 10 years. This would lift the market from $6 billion of in-force premium today to over $18 billion of in-force premium in 2017.

 

 

 

 

 

 

 

 

 

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