Fast Market Research

New Market Report: Non-Life Insurance in New Zealand, Key Trends and Opportunities to 2016

Fast Market Research recommends "Non-Life Insurance in New Zealand, Key Trends and Opportunities to 2016" from Timetric, now available

 

Boston, MA -- (ReleaseWire) -- 09/20/2012 -- New Zealand’s operating environment for the non-life insurance segment went through a significant setback in the wake of the Darfield and Christchurch earthquakes. Losses of this magnitude are a market changing event, and had an adverse affect on non-life insurers, forcing some to exit the market entirely and others to curtail their business exposure. The key challenge faced by non-life insurers is gaining access to reinsurance. Reinsurance costs increased substantially, forcing insurers to raise their rates. Aside from natural disasters, non-life insurers also face challenges relating to regulatory changes through the rollout of the Insurance (Prudential Supervision) Act (IPSA) 2010. Over the forecast period (2012–2016), recovery in the construction markets, improving economic conditions and consolidation in the non-life segment due to regulatory changes is expected to drive growth.

View Full Report Details and Table of Contents

Key Highlights

- Rebuilding Christchurch is one of the government’s main priorities and consequently it allocated a budget of US$114.9 million to the Canterbury Earthquake Recovery Authority (CERA), to oversee reconstruction projects in 2012.
- Due to the nation’s exposure to earthquakes, the penetration rate of property insurance products is around 90%, with 60% owning contents insurance.
- Natural disasters are not the only factor contributing to the transformation of the non-life segment. Regulatory changes through the continued rollout of IPSA have lead to significant changes in licensing rules, minimum capital requirements and higher catastrophe risk capital charges, which are anticipated to contribute to consolidation levels as the larger insurers attempt to expand their market presence by acquiring smaller firms who may face difficulty in adopting the new regulation.
- The key challenge now faced by non-life insurers is gaining access to reinsurance and processing claims.
- During the review period, brokers emerged as the leading distribution channel in the non-life segment, followed by direct marketing. However, intense competition among insurers spurred the development of alternative distribution channels. The growing rate of internet penetration is altering the playing field for insurance distributors.
- The non-life insurance segment is fragmented and dominated by a number of large insurers, mostly of Australian origin. Insurance Australia Group (NZ) Holdings Ltd., Vero Insurance New Zealand Ltd., AMI Insurance Ltd., Lumley General Insurance (NZ) and Tower Insurance Ltd. are the market leaders.

Scope

This report provides a comprehensive analysis of the non-life insurance market in New Zealand:

- It provides historical values for the New Zealand non-life insurance market for the report’s 2007–2011 review period and forecast figures for the 2012–2016 forecast period

Companies Mentioned in this Report: IAG New Zealand , Vero New Zealand , Allianz New Zealand , Farmers Mutual Group , Tower (NZ) Limited

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Financial Services research reports at Fast Market Research

You may also be interested in these related reports:

- Life Insurance in New Zealand, Key Trends and Opportunities to 2016
- Life Insurance in the Netherlands, Key Trends and Opportunities to 2016
- Life Insurance in Belgium, Key Trends and Opportunities to 2016
- Personal Accident and Health Insurance in New Zealand, Key Trends and Opportunities to 2016
- Life Insurance in Singapore, Key Trends and Opportunities to 2016
- Life Insurance in Austria, Key Trends and Opportunities to 2016
- Life Insurance in Colombia, Key Trends and Opportunities to 2016
- Life Insurance in Chile, Key Trends and Opportunities to 2016
- Life Insurance in Hong Kong, Key Trends and Opportunities to 2016
- Life Insurance in Egypt, Key Trends and Opportunities to 2016