Regulatory compulsion propels commercial insurance
Australia is the second largest advanced market in Asia for commercial insurance, not least because of regulatory requirements around issues of professional indemnity, according to new research released by SwissRe.
The research also revealed that Australia ranked just inside the top 10 commercial insurance markets in the world.
The SwissRe Sigma report, released today, said Japan was the largest advanced market in Asia for commercial insurance with premium volumes of US$35.4 billion, followed by Australia with US$11.7 billion.
The report described commercial insurance penetration in Australia as high, mainly driven by the commercial liability market, including workers' compensation insurance.
The SwissRe report noted the number of areas in which Australia had mandatory requirements for commercial insurance cover and specified aviation, maritime oil pollution and residential construction.
The status of the financial planning industry with respect to professional indemnity received an oblique reference, with the SwissRe report noting that "in certain states, medical practitioners, property brokers and stock brokers are also required to have insurance cover".
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
