{"id":41874,"date":"2018-08-21T21:09:34","date_gmt":"2018-08-21T11:09:34","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=41874"},"modified":"2018-08-22T08:31:22","modified_gmt":"2018-08-21T22:31:22","slug":"overseas-insurers-set-to-dominate-australian-market","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2018\/08\/21\/overseas-insurers-set-to-dominate-australian-market\/","title":{"rendered":"Overseas Insurers Set to Dominate Australian Market"},"content":{"rendered":"

The number of Australian-owned major life insurance companies will fall to three at the conclusion of the current round of acquisitions, with their collective market share totalling around 20 per cent by March 2019.<\/p>\n

At the start of the current round, which began in October 2015 with the announcement of Nippon Life\u2019s majority acquisition of MLC Life Insurance, there were eight Australian-owned life insurers in a market of 12 major life insurers offering products into the retail advised space.<\/p>\n

A year later, this number had fallen to six as NAB completed the majority sale of MLC Life Insurance to Nippon Life, and Macquarie Life\u2019s ownership transitioned to Zurich. By the end of 2018 this number will fall to four as the acquisition of CommInsure by AIA Australia and Suncorp by TAL will be completed, before the number drops to three following the completion of ANZ\u2019s sale of OnePath to Zurich in March 2019 (Table 1).<\/p>\n

This spate of transactions will also reduce the level of market share of Total Risk Inflows held by Australian-owned life insurers by half, falling from 43.7 per cent to 20.6 per cent, based on March 2018 risk inflow data from Strategic Insight (Table 2).<\/p>\n

The transactions will also cement overseas-owned life insurers in the top three positions for market share, led by AIA Australia with 23.2 per cent, TAL with 22.7 per cent and Zurich with 14.3 per cent of Total Risk Inflows, based on March 2018 data (Table 3).<\/p>\n

Table 1: Timeline of Acquisitions<\/strong><\/p>\n

 <\/p>\n

\"\"<\/a><\/p>\n

 <\/p>\n

Table 2: Market Share of Australian Insurers <\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Life Insurers<\/td>\nTotal Inflows Market Share (%) at March 2018*<\/td>\nLife Insurers<\/td>\nTotal Inflows Market Share (%) Projected at March 2019*<\/td>\n<\/tr>\n
Overseas Insurers<\/u><\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
TAL<\/td>\n17.7<\/td>\nTAL (inc. Suncorp)<\/td>\n22.7<\/td>\n<\/tr>\n
AIA Australia<\/td>\n15.2<\/td>\nAIA Australia (inc. CommInsure)<\/td>\n23.2<\/td>\n<\/tr>\n
MLC Life Insurance<\/td>\n12.0<\/td>\nMLC Life Insurance<\/td>\n12.0<\/td>\n<\/tr>\n
Zurich<\/td>\n4.2<\/td>\nZurich (inc. Suncorp)<\/td>\n14.3<\/td>\n<\/tr>\n
MetLife Insurance<\/td>\n4.2<\/td>\nMetLife Insurance<\/td>\n4.2<\/td>\n<\/tr>\n
Total<\/strong><\/td>\n53.3<\/strong><\/td>\nTotal<\/strong><\/td>\n76.4<\/strong><\/td>\n<\/tr>\n
Australian Insurers<\/u><\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
AMP<\/td>\n11.6<\/td>\nAMP<\/td>\n11.6<\/td>\n<\/tr>\n
OnePath Australia<\/td>\n10.1<\/td>\n–<\/td>\n<\/td>\n<\/tr>\n
CommInsure<\/td>\n8.0<\/td>\n–<\/td>\n<\/td>\n<\/tr>\n
BT \/ Westpac<\/td>\n7.7<\/td>\nBT \/ Westpac<\/td>\n7.7<\/td>\n<\/tr>\n
Suncorp<\/td>\n5.0<\/td>\n–<\/td>\n<\/td>\n<\/tr>\n
ClearView<\/td>\n1.3<\/td>\nClearView<\/td>\n1.3<\/td>\n<\/tr>\n
Total<\/strong><\/td>\n43.7<\/strong><\/td>\nTotal<\/strong><\/td>\n20.6<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

*Based on Total Risk Inflows Market Share at March 2018. Source: Strategic Insight <\/strong><\/p>\n

\u00a0<\/strong><\/p>\n

Table 3: Total Market Share By Life Insurer<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Life Insurers<\/td>\nTotal Inflows Market Share (%) Projected as at March 2019*<\/td>\n<\/tr>\n
AIA Australia<\/td>\n23.2<\/td>\n<\/tr>\n
TAL<\/td>\n22.7<\/td>\n<\/tr>\n
Zurich<\/td>\n14.3<\/td>\n<\/tr>\n
MLC Life Insurance<\/td>\n12.0<\/td>\n<\/tr>\n
AMP<\/td>\n11.6<\/td>\n<\/tr>\n
BT \/ Westpac<\/td>\n7.7<\/td>\n<\/tr>\n
MetLife Insurance<\/td>\n4.2<\/td>\n<\/tr>\n
ClearView<\/td>\n1.3<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

*Based on Total Risk Inflows Market Share at March 2018. Source: Strategic Insight <\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The number of Australian-owned major life insurance companies will fall to three at the conclusion of the current round of acquisitions, with their collective market share totalling around 20 per cent by March 2019.<\/p>\n","protected":false},"author":3,"featured_media":41953,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,3,4],"tags":[4247],"class_list":["post-41874","post","type-post","status-publish","format-standard","has-post-thumbnail","category-company-news","category-general","category-products","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/41874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=41874"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/41874\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/41953"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=41874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=41874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=41874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}