Cost of compliance forces smaller brokers to consolidate

A number of recent studies have suggested surprisingly high levels of non-insurance and under-insurance in Australia. According to a recent survey by the Insurance Council of Australia, 26% of households in New South Wales have no form of buildings or contents insurance. According to new research by insurer CGU, 65% of small businesses have no consequential loss insurance and most businesses fail to increase their property sums insured on a regular basis

The non-life market in Australia is divided between public and private sector companies. With the exception of the Territory Insurance Office in the Northern Territory and the Export Finance and Insurance Corporation (EFIC), the public sector companies write only compulsory third party and workers’ compensation.