In KPMG's General Insurance Industry review 2019 report, it was stated that insurance profit for the year ended 30 june 2019 was down 12 percent to $4,399 million a significant reduction on the...

Assignment Question – Economic Issues Impact on the Insurance Industry
Introduction
In KPMG's General Insurance Industry review 2019 report, it was stated that insurance profit for the year ended 30 June 2019 was down 12 percent to $4,399 million, a significant reduction on the previous two year's annual results. In the assignment question, the prevalent economic issues in Global interest have impacted the General Insurance Industry (Australia). As we know, Australia has a broad and old general insurance industry. In 2016, there were 109 APRA registered general insurers eligible to conduct business in Australia.
Concepts and Implications
In 2011, as per the KPMG Review (2019), the interest rates in the Australian economy fell by more than 80%, and the official cash rate fell by 4.75 percent. The trajectory in the economic environment led the investment income for the insurance industry to experience consistent reductions over time. As the asset takes time to mature to be reinvested, it leads to a lower interest income as the money is blocked.
The Economic Issues confronted by the General Insurance Industry since 2017-20 :
1....