Australia's insurance market can be divided into roughly three components: life insurance, general insurance and health insurance. These markets are fairly distinct, with most larger insurers focusing on only one type, although in recent times several of these companies have broadened their scope into more general financial services, and have faced competition from banks and subsidiaries of foreign financial conglomerates. With services such as disability insurance, income protection and even 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 apparently many companies offering insurance policies in the Australian market, but many are in fact underwritten by a limited number of insurers operating under a large number of brand names.[1]

Types of insurance

Life insurance

Life insurance products sold in Australia include term life insurance and disability income insurance. Australian insurers are unusual in providing a lump sum Total and Permanent Disability insurance. Life insurers also sell superannuation investment products.[2] Life insurance in Australia is sold through intermediaries (such as brokers) as well as direct to the consumer, in fact Australia is one of the leading countries when it comes to selling life insurance through direct channels.[3]

Life insurers

Life insurance companies that operate in Australia include:[4]

In addition, life insurance is also sold by friendly societies, credit unions, health funds and large retailers such as Coles Supermarkets and Woolworths Limited.

General insurance

General insurance products sold in the Australian market can roughly be divided into two classes:

Certain types of insurance, such as CTP and worker's compensation, are statutory (i.e. are required by law), and can differ considerably by state.

General insurers

Large general insurer groups include:

  • Insurance Australia Group (IAG) markets its products under brands including NRMA, RACV, CGU, SGIO, and Buzz.
  • Suncorp markets its products under brands including AAMI, GIO, APIA, Just Car, Bingle, Vero, InsureMyRide, Shannons, CIL, and Terri Scheer.
  • QBE Insurance
  • Auto & General markets its products under brands including Budget Direct, Australia Post, Virgin Money, Compare the Market and they underwrite home and car insurance from 1Cover.
  • Allianz Australia (brands include: Club Marine and Hunter Premium Funding, and they underwrite travel insurance from 1Cover)
  • Hollard Insurance, markets its policies through a number of brands including Real Insurance, and Guardian. It also sells policies through agents such as Woolworths, Australian Seniors Insurance, Medibank, and others.[6]

Previous insurers include:

Health insurance

The Australian Government provides a basic universal health cover through the Medicare scheme. Individuals and families can take out health insurance for services not covered by Medicare or for services provided in private hospitals.

The Australian taxation system encourages middle to high income earners to take out private health insurance. While most taxpayers pay a 2% Medicare levy, an additional 1% to 1.5% Medicare Levy Surcharge is payable by high-income taxpayers who do not take out private health insurance.

Industry structure

Life insurers were traditionally mutual companies, but in the 1980s and 1990s many of them demutualised and with a few large exceptions are owned by banks. The large remaining insurers have become "financial services" organisations and now derive the majority of their revenue from superannuation investment products. There are four main distribution channels for life insurance, including group insurance, bank insurance, IFAs and direct channels (mainly through TV).[7]

General Insurers have a more diverse ownership structure, with more stand alone independent general insurers (although some life insurers do own general insurers).

Health insurers are still predominantly mutuals. The notable exception is Medibank Private, the largest private health insurer in Australia, which was owned by the Government of Australia, but was privatised in 2014-15.


The prudential aspects of general, life and health insurance (solvency etc.) are regulated by the Australian Prudential Regulation Authority (APRA). Matters relating to advice or disclosure of insurance products sold are regulated by the Australian Securities and Investments Commission (ASIC). The Australian Competition and Consumer Commission (ACCC) also has a regulatory role with respect to competition law.

In certain states, various bodies also have powers in regulating certain types of statutory insurance. For example, in New South Wales the Motor Accidents Authority regulates Compulsory Third Party motor liability insurance. In many cases these bodies have powers regarding premium rating and reinsurance rules.

The primary federal legislation is:

Other legislation which affects the industry includes:

  • A Nex Tax System (Goods and Services Tax) Act 1999 (Taxation rules in respect to insurance e.g. Division 78)
  • Privacy Act 1988 (The National Privacy Principles)

Further regulations include:

Industry bodies

The main industry bodies are:

  • Insurance Council of Australia which represents general insurers.
  • Financial Services Council
  • Australian and New Zealand Institute of Insurance and Finance
  • Underwriting Agencies Council
  • Institute of Actuaries of Australia
  • ACORD which is the insurance industry global standards organisation. ACORD has standards for personal and commercial lines and has been working with the Australian General Insurers to develop those XML standards, standard applications for insurance, and certificates of currency.
  • Australasian Institute of Chartered Loss Adjusters (AICLA) which represents qualified loss adjusters

See also


  1. ^ Don't be fooled by the plethora of brands
  2. ^ Some of the larger insurance providers have expanded to include services to cover events such as funerals, accidental Injury, accidental Death, income Protection and even bill protection
  3. ^ "Australia leads in direct life insurance distribution". Retrieved 8 September 2015. 
  4. ^ "Top 10 Australian life insurance companies according to market share". 
  5. ^ http://www.axa.com/en/group/axaworld/asia-pacific/australia/#act1
  6. ^ "Hollard Insurance - Home". hollard.com.au. Retrieved 2014-02-11. 
  7. ^ "Life Insurance Australia" (PDF). Retrieved 3 August 2015.