Employers' Liability Insurance in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: October 2023
ANZSIC OD4138Revenue
$18.3bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
9,949
Businesses
15
Wages
$XXX.Xm
Employers' Liability Insurance in Australia industry analysis
Employers’ liability insurance is mandatory for many businesses. As a result, premium revenue is impacted by labour force numbers and is linked to employee remuneration. The largest employers’ liability insurers are the statutory authorities of state governments. While the premium revenue stream is consistent and predictable over the long run, recent economic shocks from COVID-19 pandemic lockdowns have scattered revenue returns. On top of this, investment income’s revenue stream experienced significant volatility as equity markets and bond yield changes accelerated over the past few years. In normal operating conditions, investment income can constitute up to 20% of industry revenue, and up to 40% for certain entities.
Trends and Insights
- Strict work safety practices and fewer safety risks have reduced the work accident rate. However, stronger investment returns and a rise in premium revenue will continue supporting revenue.
- Psychological workplace injury-related claims are becoming more common. The long-term processes involved with remedying psychological injuries result in higher payouts, justifying higher premium pricing.
- Melbourne and Sydney are prominent finance and insurance centres, housing many insurance firm headquarters. High insurance premiums on Australia’s eastern seaboard are backed by a more affluent population and a higher policyholder density.
- The Employers’ Liability Insurance industry has low competition due to state-owned corporations’ dominance in some states. For example, WorkCover Queensland manages most claims in its state, except for those from self-insured companies.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 2.4 % over the past five years, to reach an estimated $18.3bn in 2023.
Trends and Insights
Investment returns and interest rates have played a big role
- Volatile investment returns have affected overall industry revenue, with heavy investment downswings during lockdowns leading to fluctuating profit margins.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The labour force will continue its forward march, supporting industry activity
- As the population and economy grow, more individuals are expected to join the workforce, improving industry revenue.
Biggest companies in the Employers' Liability Insurance in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
QBE Insurance | 292.5 | |
IAG | 218.3 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Physical workplace injury insurance, Psychological workplace injury insurance and Long-term disease insurance. Physical workplace injury insurance is the largest segment of the Employers' Liability Insurance in Australia.
Trends and Insights
The changing business environment has reshaped demand for insurance for physical workplace injury
- Workplace injury insurance covers common on-job injuries like fractures, burns, and muscle strains.
- More insights available in the full report
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Competitors
- There are no industries to display.
Complementors
- Life Insurance in Australia
- Health Insurance in Australia
- General Insurance in Australia
- Insurance Brokerage in Australia
International industries
- Global Direct General Insurance Carriers
- Workers' Compensation Insurance in the US
- Property, Casualty and Direct Insurance in Canada
- General Insurance in New Zealand
- General Insurance in the UK
Table of Contents
About this industry
Industry definition
Industry operators underwrite workers’ compensation insurance, protecting businesses from liabilities relating to injuries at the workplace. The industry excludes self-insurers.
What's included in this industry?
Physical workplace injury insurancePsychological workplace injury insuranceLong-term disease insuranceCranial injury, amputation, death or permanent impairment and other workplace insuranceCompanies
QBE InsuranceIAGPurchase this report to view all 2 major companies in this industry.
Related Terms
SELF-INSURERSEMPLOYERS' LIABILITYWORKCOVER AUTHORITYUNDERWRITEIndustry Code
ANZSIC 6322 - Employers' Liability Insurance in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Strict work safety practices and fewer safety risks have reduced the work accident rate. However, stronger investment returns and a rise in premium revenue will continue supp...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Psychological workplace injury-related claims are becoming more common. The long-term processes involved with remedying psychological injuries result in higher payouts, justi...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Melbourne and Sydney are prominent finance and insurance centres, housing many insurance firm headquarters. High insurance premiums on Australia’s eastern seaboard are backed...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The Employers’ Liability Insurance industry has low competition due to state-owned corporations’ dominance in some states. For example, WorkCover Queensland manages most clai...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
State-owned entities hold the most power in the Employers’ Liability Insurance industry. They control policy issuance and occupational health and safety state regulatory poli...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of QBE Insurance's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of IAG's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for QBE Insurance, and factors influencing its performance in the industry
- Description and key data for IAG, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The work accident rate drastically impacts employers’ liability insurance providers. A rise in accidents leads to an uptick in claims, resulting in higher premiums and indust...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins have swayed year to year depending on investment performance and claim numbers. Profitability has lifted after bottoming out during the height of COVID-19 pand...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Employers' Liability Insurance industry in Australia in 2024?
The market size of the Employers' Liability Insurance industry in Australia is $18.3bn in 2024.
How many businesses are there in the Employers' Liability Insurance in Australia industry in 2023?
There are 15 businesses in the Employers' Liability Insurance industry in Australia, which has declined at a CAGR of 0.0 % between 2018 and 2023.
Has the Employers' Liability Insurance industry in Australia grown or declined over the past 5 years?
The market size of the Employers' Liability Insurance industry in Australia has been declining at a CAGR of 2.4 % between 2018 and 2023.
What is the forecast growth of the Employers' Liability Insurance industry in Australia over the next 5 years?
Over the next five years, the Employers' Liability Insurance industry in Australia is expected to grow.
What are the biggest companies in the Employers' Liability Insurance market in Australia?
The biggest companies operating in the Employers' Liability Insurance market in Australia are QBE Insurance and IAG
What does the Employers' Liability Insurance in Australia include?
Physical workplace injury insurance and Psychological workplace injury insurance are part of the Employers' Liability Insurance industry.
Which companies have the highest market share in the Employers' Liability Insurance in Australia?
The company holding the most market share in Australia is QBE Insurance.
How competitive is the Employers' Liability Insurance industry in Australia?
The level of competition is high and steady in the Employers' Liability Insurance industry in Australia.
