1. Briefing notes and sales support for newspaper media sales teams
Insurance market
Briefing notes and sales support
for newspaper media sales teams

2. What’s in this deck?
This deck is split into two sections: Section 1 An overview of the Australian Insurance market (car, home and contents and health). Media owners must understand the competitive environment and business needs of their clients in order to provide optimal advertising solutions. Section 1 of this deck won’t make you an instant expert, but it will help get you up to speed on the most important facts about the category.
Section 2 Support slides for sales presentations Every great sales presentation is tailored for each client, but there are certain points that are consistently relevant to clients within a category. Section two contains research about how newspaper media can help insurance providers engage with key target markets.

3. Section 1 Key insurance markets: an overview

4. Car insurance

5. Car insurance: revenue
Industry revenue is estimated to have grown at an annualised 2.5% over the five years through to reach $19.4 billion.
Car insurance industry revenue:
$19.4 billion
Annual growth : 2.5%
Businesses: 47
Source: IBISWorld, Car Insurance in Australia, November 2015.

6. Car insurance: key players
Revenue by company
Rank
Company
2015
(revenue $billion)
2016*
Change
(%)  1
Insurance Australia Group Ltd
(Market share: 26.3%)
5.0
5.1
+2.0  2
Suncorp Group Ltd  3
Allianz Australia Ltd
(Market share: 5.7%)
1.0
1.1
+3.2 4
QBE Insurance Group Ltd
(Market share: 5.6%)
0.9
+10.1
The car insurance industry exhibits a medium level of market share concentration. The four largest players account for 64% of industry revenue, while IAG and Suncorp alone, account for over half of market revenue.
*Estimate.
Source: IBISWorld, Car Insurance in Australia, November 2015.

7. Car insurance: industry outlook
The car insurance industry is anticipated to perform strongly over the next five years
Revenue Outlook
The car insurance industry is in the growth stage of its life cycle.
Industry revenue is forecast to grow at an annualised 5.0% over the five years through , to reach $24.8 billion.
Year
Revenue $ million
Growth %
20,612.1
6.1
21,742.3
5.5
22,916.5
5.4
23,736.8
3.6
24,805.8
4.5
Source: IBISWorld, Car Insurance in Australia, November 2015.

8. Car insurance: industry outlook cont.
Ongoing increases in the number of vehicles will drive industry growth, but new regulations will impose greater costs to the industry
Demand for motor vehicles is projected to grow strongly over the next five years.
The number of motor vehicles in Australia is forecast to reach 20.6 million in , which represents annualised growth of 2.3% over the next five years.
Changes in regulation requiring insurers to implement several new structures will impose greater costs on the industry.
To prevent further erosion of profit margins, insurers will likely be exploring more cost-cutting options.
Source: IBISWorld, Car Insurance in Australia, November 2015.

9. Car insurance: competitive landscape
Competition is expected to intensify as non-traditional insurance operators
enter the market.
The industry's major players are expected to put up a more aggressive fight to defend their market share against new online entrants.
Aside from competition on the basis of price and branding, consumers are expected to increasingly evaluate insurers on their product offering and customer satisfaction.
Industry participants will have to differentiate their products to beat the online aggregators that make price comparison easier for consumers.
Demand for customised insurance products is expected to rise, which may enable insurers to target small niche markets.
Source: IBISWorld, Car Insurance in Australia, November 2015.

10. Home and Contents insurance

11. Home and contents insurance: revenue
Industry revenue is estimated to have grown at an annualised 5.9% over the five years through to reach $9.2 billion.
Home and contents insurance industry revenue:
$9.2 billion
Annual growth : 5.9%
Businesses: 98
Source: IBISWorld, Home and Contents Insurance in Australia, October 2015.

12. Home and contents insurance: four key players
Revenue by company*
Rank
Company
2015
(revenue $billion)
2016
Change (%)  1
Insurance Australia Group Ltd
(Market share: 34.3%)
2.85
3.16
+10.9  2
Suncorp Group Ltd
(Market share: 22.9%)
1.97
2.11
+7.1  3
QBE Insurance Group Ltd
(Market share: 13.4%)
1.20
1.23
+2.5 4
Allianz Australia Ltd
(Market share: 11.8%)
1.02
1.09
+6.9
The Home and Contents insurance industry exhibits a high level of market share concentration, with the top four companies estimated to account for more than 80% of industry revenue.
*Estimate.
Source: IBISWorld, Home and Contents Insurance in Australia, October 2015.

13. Home and contents insurance: industry outlook
The home and contents insurance industry is expected to continue trending upwards over the next five years
Revenue Outlook
Industry revenue is forecast to grow at an annualised 6.8% over the five years through , to reach $12.8 billion.
This growth is largely attributable to the strong recovery of the industry following a period of losses from the global financial crisis and the Queensland floods.
Year
Revenue $ million
Growth %
9,817.1
6.6
10,425.8
6.2
11,249.4
7.9
12,025.6
6.9
12,783.2
6.3
Source: IBISWorld, Home and Contents Insurance in Australia, October 2015.

14. Home and contents: industry outlook cont.
Rising premiums and changing housing arrangements will feature heavily in the home and contents industry over the next five years
Rising premiums
Premiums are expected to continue rising to accommodate natural disasters risks and the rising costs of reinsurance.
Changing household composition
Changing lifestyle and housing arrangements will affect the product mix over the next five years, with a rising number of people renting or living in apartments due to the declining affordability of housing.
Source: IBISWorld, Home and Contents Insurance in Australia, October 2015.

15. Home and contents insurance: competitive landscape
Competition is increasing
Competition has increased since , as economic conditions recovered following the global financial crisis.
The number of enterprises is expected to fall over the next five years, as the industry continues to consolidate around the major players.
Source: IBISWorld, Home and Contents Insurance in Australia, October 2015.

16. Health insurance

17. Health insurance: revenue
Industry revenue is estimated to have grown at an annualised 6.5% over the
five years through to reach $22.5. billion.
Health insurance industry revenue:
$22.5 billion
Annual growth : 6.5%
Businesses: 33
Source: IBISWorld, Health Insurance in Australia, May 2016.

18. Health insurance: top five players
Revenue by company
Rank
Company
2015
(revenue $billion)
2016*
Change
(%) 1
Medibank Private Ltd
(Market share: 27.5%)
5.9
6.2
+5.1 2
BUPA Australia Holdings Pty Ltd
Market share: 27.1%)
5.8
6.1
+5.2 3
Hospitals Contribution Fund of Australia Ltd
(Market share: 11.1%)
2.4
2.5
+4.2 4
NIB Holdings Ltd
(Market share: 6.7%)
1.4
1.5
+7.1 5
HBF Health Ltd
(Market share: 5.8%)
1.3
0.0
The top four operators account for an estimated 72% of industry revenue. These operators have increased their combined market share as a result of several major mergers and acquisitions over the past five years. While the industry's two largest players, Medibank and BUPA, have grown strongly over the past five years, much of the industry's growth has come from the smaller players, including NIB, HCF and HBF.
*Estimate.
Source: IBISWorld, Health Insurance in Australia, May 2016.

19. Health insurance: industry outlook
The health insurance industry is expected to continue growing strongly
over the next five years.
Revenue Outlook
Year
Revenue $ million
Growth %
23,810.4
5.7
24,817.9
4.2
26,017.9
4.8
27,401.7
5.3
28,697.0
4.7
30,306.1
5.6
Industry revenue is forecast to grow at an annualised 5% over the five years through , to reach $28.7 billion.
Source: IBISWorld, Health Insurance in Australia, May 2016.

20. Health insurance: industry outlook cont.
The population aged 50 and older expected to rise  
Older age groups are more likely to buy health insurance than younger age groups, which is likely to have a positive affect on insurance uptake.
Regulation
The strain on the public healthcare system is expected to intensify as the population ages. Therefore, it is in the government's interest to encourage people to use the private healthcare system.
Real household disposable income projected to rise 
People with higher disposable income have a greater capacity to spend and are more likely to purchase private health insurance, leading to greater demand for private health insurance membership including comprehensive cover.
Source: IBISWorld, Health Insurance in Australia, May 2016.

21. Health insurance: Competitive landscape
The increase in the Medicare levy surcharge threshold and changes in the Private Health Insurance Rebate have resulted in heightened competition in the industry
The industry's larger players typically benefit from economies of scale and are expected to acquire struggling smaller operators, resulting in a decline in the number of industry enterprises.
Source: IBISWorld, Health Insurance in Australia, May 2016.

22. Section 2 Support slides for sales presentations

23. About these slides
The following slides provide general supporting arguments to assist sales teams when building client-specific presentations. The purpose is to open discussion, to demonstrate a basic understanding of factors that drive sales for insurance services, and to show how newspaper media can help to influence the sales process.
These slides are intended to be used in a presentation after recapping the brief, and before presenting analysis and recommendations tailored to the specific client. Needless to say, they can and should be adapted to suit your particular presentation requirements.
Recap client/agency brief
Telecommunication industry support slides
Client specific analysis
Recommendations

24. News media reaches consumers
News media delivers superior coverage of consumers already active in the insurance market
News media reaches 93% of active consumers in the insurance market (car, health and home and contents):
12 million readers who own comprehensive car insurance
10.2 million readers who have health insurance
11.3 million readers who have home and contents insurance
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only.

25. Non-news media readers are less active in the insurance market
By comparison…
Non-news media readers are less active in the insurance market
861,000 non-news media readers have comprehensive car insurance
735,000 non-news media readers have health insurance
735,000 non-news media readers have home and contents insurance
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only.

26. Get the best from news media platforms
News media in print and digital formats are read by 92% of those actively planning to buy insurance products or services in the next 12 months.*
929,000 readers who plan to purchase comprehensive car insurance
910,000 readers who intend to obtain health insurance
898,000 audience members planning to purchase home and contents insurance
* Figure refers to health, home and contents and comprehensive car insurance. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only.

27. Engage prospects early
Engaging prospects before they enter the market may increase brand recognition and affinity, leading brands to become a part of the consideration set when the time comes to purchase
93% (1.9 million) of people planning to buy a car in the next year read news media
(Only 138,000 non-news media readers plan to do the same).
93% (2 million) of people planning to buy a property in the next year read news media
(Only 145,000 non-news media readers plan to do the same).
93% (13.6 million) of people taking steps now to stay healthy in the future read news media
(Only 1 million non-news media readers are doing the same).
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only.

28. News media consumers spend big
The news media audience over-indexes in its reach of the country’s top spenders on insurance products and services
News media reaches 94% of the top percent of spenders on health insurance
Non-news media readers are 27% less likely to be among the top 20 percent of spenders.
News media reaches nine in ten of the top 20 percent of spenders on building and contents insurance
Non-news media readers are 21% less likely to be among the top 20 percent of spenders.
NB. Data not available for car insurance category. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only.

29. Insurance prospects regularly engage with newspapers
Insurance prospects are more likely to be mid- or heavy- print newspaper readers.
Consumers responsible for household finance decisions and planning to purchase home and contents insurance* are 5% more likely to be heavy newspaper readers (i.e. 7+ editions a week) than the general public. Current Health insurance policy holders are 10% more likely to be heavy newspaper readers than the general public. Consumers planning to purchase a new car2 in the next year are 34% more likely to be heavy newspaper readers.
*In the next 12 months. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only.

30. Client specific analysis & recommendations
This is the point to bridge to a client specific discussion.
Each presentation will need to be individually tailored to suit the client and their objectives, but the logical flow from here is to move on to
Analyses that address the client’s specific situation, challenges and opportunities.
Solutions using your inventory, giving clear reasons why they are appropriate to the client’s specific needs, and suggestions on how they can be used most effectively.