DUMMY

1
Economic Issues That Have Affected The General Insurance Industry of KPMG
Table of Contents
Introduction……………………………………………………………………………………3
Factors Affecting the Insurance Sector…………………………………………………….3
References…………………………………………………………………………………….4
Introduction
KPMG General Insurance Industry review report for 2019 states that profit of the year has plunged to 12 percent to $4,399 million. There are various economic issues responsible for this downward trend. (Arych, M. and Darcy, W., 2020. General trends and competitiveness of Australian life insurance industry) Some of them are natural hazards, lack of infrastructure, digitization of the economy, cyber threat, etc
    
    .
    
    
Result and Analysis
    Particulars
    Total 2018/19
    Total 2017/18
    Gross Written Premium $m
    44,829
    42,744
    Net Earned Premium $m
    32,231
    30,833
    Underwriting Result $m
    2,401
    3,923
    Insurance Profit $m
    4,399
    5,020
    Loss Ratio
    68.0%
    63.0%
    Expense Ratio
    24.0%
    25.0%
    Combined Ratio
    92.0%
    88.0%
    Insurance Margin
    13.6%
    16.3%
    Capital Ratio
    1.79
    1.83
Factors Affecting the Insurance Sector
1. Digital- Today is the world of Digitalization. Adopting only technology is not sufficient. (Cappiello, A., 2020. The technological disruption of insurance industry: a review. International Journal of Business and Social Science, 11(1)). Digital transformation is required. The company may have lagged behind due to being less customer-centric, that is, no use of personalized services. Company may make use of cloud and agile ways...