Life Insurance in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC K6310Revenue
$26.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
17,090
Businesses
27
Wages
$X.Xbn
Life Insurance in Australia industry analysis
Investment revenue volatility has battered the Life Insurance industry. The COVID-19 pandemic weakened investments, which insurers rely on, causing revenue to plunge. All insurers try to exploit global equity and debt markets to maximise returns but have struggled in recent years. Market downturns have depressed profit margins and caused some life insurers to exit.
Trends and Insights
- Investment revenue fluctuations dictate the performance of life insurers. Life insurers rely heavily on investment returns to remain viable.
- Group lump sum risk policies continue to represent the largest product segment. Companies and superannuation funds heavily rely on the organisers of this product to cover employees or members.
- Life insurance offices are located in major cities. Being close to financial centres allows efficient work processes between related upstream and downstream operators.
- Life insurance is an intensely price-competitive area. Comparison sites and algorithmic pricing models underline the importance on efficient policy pricing.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 15.4 % over the past five years, to reach an estimated $26.4bn in 2023.
Trends and Insights
Market conditions have wreaked havoc on life insurers
- Altered trading conditions from the COVID-19 pandemic are sticking around.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Global markets will take a while to settle following the interest rate hikes
- Interest rate hikes will gradually take effect and lessen inflationary pressures on the wider economy.
Biggest companies in the Life Insurance in Australia
| Company | Market Share (%)
2023 | Revenue ($m)
2023 |
|---|---|---|
TAL Dai-ichi Life Australia | 3,508.5 | |
AIA Australia | 1,842.0 | |
Zurich Financial Services | 1,439.7 |
To view the market share and analysis for all 6 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 Individual lump sum risk, Group lump sum risk and Individual disability income insurance. Individual lump sum risk is the largest segment of the Life Insurance in Australia.
Trends and Insights
Group lump sum insurance remains the most popular life insurance product
- Group lump sum insurance policies are written for individuals sharing similar risks, with the largest organisers being corporations and superannuation funds.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- General Insurance in Australia
Complementors
- Life Insurance in Australia
- Health Services in Australia
International industries
- Global Life & Health Insurance Carriers
- Global Reinsurance Carriers
- Life Insurance & Annuities in the US
- Reinsurance Carriers in the US
- Life Insurance & Annuities in Canada
Table of Contents
About this industry
Industry definition
Insurers provide life insurance cover and investment-linked life insurance products. Life insurance is a contract obligating the insurer to pay designated beneficiaries a sum of money in the event of the insured individual’s death, disablement, serious illness or injury. As with all insurance contracts, exclusions exist that may limit the insurer’s liability.
What's included in this industry?
Individual lump sum riskGroup lump sum riskIndividual disability income insuranceGroup disability income insuranceTerm annuities, non-participating and non-investment linked insuranceCompanies
TAL Dai-ichi Life AustraliaAIA AustraliaZurich Financial ServicesPurchase this report to view all 6 major companies in this industry.
Related Terms
INVESTMENT LINKED POLICIESTERM INSURANCEAPRAIndustry Code
ANZSIC 6310 - Life 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
Investment revenue fluctuations dictate the performance of life insurers. Life insurers rely heavily on investment returns to remain viable.
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
Group lump sum risk policies continue to represent the largest product segment. Companies and superannuation funds heavily rely on the organisers of this product to cover emp...
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
Life insurance offices are located in major cities. Being close to financial centres allows efficient work processes between related upstream and downstream operators.
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
Life insurance is an intensely price-competitive area. Comparison sites and algorithmic pricing models underline the importance on efficient policy pricing.
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
TAL has broadened its scope, acquiring the life insurance divisions of Suncorp and Westpac. The company's growth has set it up as the most dominant life insurer.
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 TAL Dai-ichi Life Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of AIA Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Zurich Financial Services's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for TAL Dai-ichi Life Australia, and factors influencing its performance in the industry
- Description and key data for AIA Australia, and factors influencing its performance in the industry
- Description and key data for Zurich Financial Services, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
APRA regulates the industry through the Life Insurance Act and other standard settings. Life insurers must accurately report policy liabilities and premiums, among other aspe...
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
Rising claim expenses have eaten away at profit margins. The ageing population is skewing the policyholder age higher, intensifying expenses.
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 Life Insurance industry in Australia in 2024?
The market size of the Life Insurance industry in Australia is $26.4bn in 2024.
How many businesses are there in the Life Insurance in Australia industry in 2023?
There are 27 businesses in the Life Insurance industry in Australia, which has declined at a CAGR of 1.4 % between 2018 and 2023.
Has the Life Insurance industry in Australia grown or declined over the past 5 years?
The market size of the Life Insurance industry in Australia has been declining at a CAGR of 15.4 % between 2018 and 2023.
What is the forecast growth of the Life Insurance industry in Australia over the next 5 years?
Over the next five years, the Life Insurance industry in Australia is expected to grow.
What are the biggest companies in the Life Insurance market in Australia?
The biggest companies operating in the Life Insurance market in Australia are TAL Dai-ichi Life Australia, AIA Australia and Zurich Financial Services
What does the Life Insurance in Australia include?
Individual lump sum risk and Group lump sum risk are part of the Life Insurance industry.
Which companies have the highest market share in the Life Insurance in Australia?
The company holding the most market share in Australia is TAL Dai-ichi Life Australia.
How competitive is the Life Insurance industry in Australia?
The level of competition is high and increasing in the Life Insurance industry in Australia.
