The Australian insurance sector is roughly divided into three essential elements, and those are life insurance, health insurance and general insurance. Australian life insurance sectors are relatively distinct as maximum insurer focused on the specific coverage. Australian insurance sectors have evolved the marketing trend they involve general insurance. This assists the insurance sectors to broaden their view and to develop competitive qualities. Australian insurance sectors expanded globally through influencing services such as income protection funeral insurance, disability insurance. Hence the insurance sectors develop their potentiality and include the cross border strategies to expand internationally. This report will discuss the industry sector, significant competitors, domestic market rationale and the history of the insurance organization.
Australian insurance sector comprises the general insurance, life insurance and health insurance. The enhancement of public insurance policy in those sectors has increased its marketing approach. This assists the insurance sectors to evolve their promotion of their value and become more challenging. Insurance sectors of Australia have established various services, and this leads the areas to expand globally. The services of financial sectors include income protection, disability insurance, and funeral protection (Financial Planning Research Journal, 2015). Thus, it emerges the organizational value of Australian insurance sectors and helps to compete efficiently against other financial areas of abroad countries. Insurance sectors are generally respective sectors, and the investment process of the stakeholders helps to influence the marketing trend of the insurance sectors. The evolution of communication process, information technologies assist in promoting the value of the insurance sectors of Australia and leading them to expand globally. Those changes help to derive the insurance sectors from influencing the production value and thus help to control the economic condition (Kraff, 2019). These factors also contribute to motivating the relationship between organizational performance and business strategy. The enhancement of information technology derives the insurance sectors from creating specific efforts in corporate innovation (Liu, 2019).
Australian insurance organization focused on life, health, general insurance. Australian insurance sectors enhanced the services, including income protection, funeral insurance, and disability insurance. Thus the Australian insurance sectors evolve the productivity and develop the marketing trend throughout the world. Therefore it makes the Australian industries to become more challenging and to compete potentially against other financial areas of foreign countries. Additionally, the Chinese insurance sectors have expanded dramatically in the past decade. The Chinese insurance sectors convey 50% share in life insurance and a 16 % share in correspondence insurance (Medium, 2019). Chinese governance devolves the entry barrier for the foreign entity, and thus, they aimed to influence the marketing trends of China (Newson, 2017) .The inclusion of information technology, the communication process can help to motivate the competency of the Australian financial sectors. Thus it evolves the organizational performance and helps to expand globally. The revenue process of the insurance sectors promotes through the enhancement of superannuation investment criteria. The progression of the various distribution channels such as bank insurance, group insurance, direct channels encourages the marketing growth of insurance sectors (Sehgal, 2017). This can be included as the enhanced strategy to provoke the marketing strategies of insurance organization and thus helps to influence the marketing trend.
|Company Name||Established in||Market Share||Main Products||Main Strengths||Weaknesses|
|Insurance Australia group||2000||50%||General insurance, safety insurance, life insurance||Enhanced services||Weak information technology|
|Suncorp||1996||40%||General insurance, life insurance, health insurance||Banking capability||Weak communication system|
|Allianz Australia||1890||50%||General insurance, life insurance, health insurance||Enhanced services||Weak information technology|
Figure: Positioning Maps of the Competitors
The insurance sector in Australia has a good past. However, the market has been changed with the changing time. There are several reasons for that. In this era of globalization, there are many companies which provide insurance services internationally. In Australia, there are also some international insurance organization like this, which has increased the market competition of the sector in Australia. Australia has primarily three key segments in the insurance sector which are: Health insurance, General insurance and Life insurance (Shkolnyk, 2017). As the market competition is increasing, the growth of the sector is also experiencing an increase. The information about the sector is available to the employees of this sector. The person who wants to be attached with this sector can collect information from the available websites of the insurance companies through internet. Industry reports are also available online which provide important information about the industry.
The new and advanced generation of this era is choosing the insurance industry. There are some reasons to choose the industry over other ones. The current financial situation of Australia is helping the industry to be healthy. The insurance industry is serving people. It helps people not to be in trouble in some negative and unwanted situations. Working in this industry can arise a satisfaction in the employees (Stechemesser, 2015).
This is a good field to start the career with. Insurance sector makes the employees stronger to compete in the market. It improves the skills of communication, solving problems, analytical power, etc. This helps the persons to improve his/her own capability and to be established in the market a valuable employee.
The career can be built by this industry. Moreover, insurance is an industry which will not lose its market easily. The market of insurance is growing day by day. The security is a purpose of choosing the industry. The balance of work life can be maintained nicely with this sector.
The make the proper strategy as per the market requirements, Porter’s five forces analysis would be helpful. By five forces analysis of Insurance industry in Australia, the loopholes and the positive points of the industry is analyzed which will help to make a strategy further. This analytical framework will be helpful to understand the current market status of this industry. The key elements of this model are as follows:
- Competitive rivalry
- Threat of substitute products from other companies
- Threat of new entry
- Power of buyers
- Power of suppliers (Sy, 2018)
Figure: Porter’s Five Forces Model
Source: (Stechemesser, 2015)
By analyzing the industry with this frame work will help to assess the followings:
- Analyze the possibilities of new organizations in the market. The new organization is always threat for the existing ones. The proper analysis can help to understand the level of threats.
- Analyze the new services launched by other insurance companies and their market impact.
- The bargaining powers of the buyers as well as the suppliers are analyzed to make the future strategy of business.
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Stechemesser, K. E. (2015). Insurance companies’ responses to climate change: Adaptation, dynamic capabilities and competitive advantage. , 557-584.
Sy, W. (2018). Financial Performance Trends of Australian Superannuation: System and Sectors. SSRN Electronic Journal.