Higher rider numbers drive growth for motorcycle insurers
Melbourne, Australia (PRWEB) May 03, 2013
Despite a spate of financial shocks and a recovering economy, the Motorcycle Insurance industry has been accelerating at a comfortable pace over the five years through 2012-13. Consumers have taken up motorcycles as the increasing world price of crude oil has made the upkeep of cars tougher. According to IBISWorld industry analyst Ryan Lin, “more people adopting motorcycles as their main form of transport has provided a buffer against falling investment returns as a result of volatile financial markets.” This trend has been most significant in coastal cities along Australia's eastern seaboard that have a large population concentration and high levels of traffic congestion and pollution. These conditions have prompted consumers to purchase motorcycles for increased manoeuvrability in large cities.
Large insurance companies have capitalised on the growing number of bikes, with the Motorcycle Insurance industry’s revenue expected to increase at an annualised 3.4% over the five years through 2012-13. Revenue is forecast to grow more strongly in 2012-13 as many consumers move on to their second or third bikes and begin to demand comprehensive insurance for a more expensive bike purchase, especially as younger riders begin to hit the road more often. “Technological advancements have also revolutionised the industry, with the new cohort of young riders looking online for insurance services”, says Lin. This has given industry operators a chance to attract a new market, as many partner with online authorised insurance retailers. There are four major players in the industry: Suncorp Group Limited, Insurance Australia Group Limited, QBE Insurance Group Limited and Allianz Australia Limited. Together these companies account for a significant share of the industry.
Over the coming five years, the explosive adoption of motorcycles will begin to slow as carmakers offer more fuel efficient products. Competition from cars and a number of other factors are expected to hamper industry growth. IBISWorld expects that industry operators will begin building brand awareness and customer loyalty through their agents and distributors, working to retain customers instead of to acquire new market share. Competition from potential entrants to specialty insurance may also weigh against industry growth, with banks and large organisations moving into insurance.
For more information, visit IBISWorld’s Motorcycle Insurance report in Australia industry page.
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IBISWorld Industry Report Key Topics
This industry underwrites (i.e. assuming the risk and assigning premiums) motorcycle insurance policies. Motorcycle insurance provides financial protection against physical damage to the vehicle and bodily injury resulting from traffic collisions. It can also protect against resulting liability.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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