Balancing act: Falling average premium rates have been offset by a growing workforce

The Employers' Liability Insurance industry's main role is to assist employees recovering from workplace incidents by organising medical benefits and compensation. The largest employers' liability insurers are the statutory authorities of the state governments. As employers' liability insurance is mandatory for many businesses, premium revenue is influenced by the number of employees in the labour force and is linked to employees' remuneration. While this is a stable and predictable driver for industry revenue, investment income is a more volatile component. In normal operating conditions, investment income can contribute up to 20% of industry revenue and in some instances, up to 40% for certain entities. Industry revenue is forecast to decline at an annualised more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Strict work safety practices and less safety risks have reduced the work accident rate
  • The number of industry enterprises has remained stable over the past five years
  • Stronger investment returns and a rise in premium revenue will boost industry revenue
  • Industry Report - Industry Analysis Chapter

    The Employers’ Liability Insurance industry has declined over the past five years as investment returns have fallen. However, the industry has fallen from a high base at the start of the five-year period. The compulsory nature of workers’ compensation insurance helps to curb any significant decline in industry revenue. Industry revenue, which is the sum of gross premium income and investment income, is expected to decline at an annualised 3.6% over the five years through 2018-19, to $13.1 billion. Record low interest rates have affected the industry’s growth, given its significant exposure to fixed-income investments. A strong sharemarket performance in 2016-17 boosted the industry but investment returns have begun to moderate, contributing to a 1.0% d...purchase to read more.

    Additional Insights for the Employers' Liability Insurance Industry

    IBISWorld has determined the most important Key Success Factors for the Employers' Liability Insurance are:

  • Ability to effectively manage risk
  • Management of a high-quality assets portfolio
  • Well-developed internal processes
  • IBISWorld analysts also discuss how external factors such as year bond rate and All Ordinaries index in the Employers' Liability Insurance industry impact industry performance..

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    What's in this report

    What is the Employers' Liability Insurance Industry?

    Industry operators underwrite workers’ compensation insurance, which protects businesses from liabilities relating to injuries at the workplace. The industry excludes self-insurers.

    Industry Products
  • Insurance for physical workplace injury
  • Insurance for psychological workplace injury
  • Insurance for long-term effects
  • Industry Activities
  • Underwriting workers' compensation insurance
  • Enforcing occupational health and safety policies
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • year bond rate
  • All Ordinaries index
  • Average weekly earnings
  • Work accident rate per 1,000 employees
  • Total number of non-manual employees in the workforce

  • Current Performance
  • Investment volatility
  • Low interest rates
  • Employment

    and safety

  • Self-insurance
  • Chart: Revenue Growth

  • Industry Outlook
  • Investment returns
  • Legislation changes
  • Table: Employers' Liability Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Employers' Liability Insurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Construction
  • Finance
  • Professional Services

  • Key Selling Industries
  • Funds Management Services
  • Insurance Brokerage
  • Office Property Operators

  • Products & Services
  • Insurance for physical workplace injury
  • Insurance for long-term effects
  • Insurance for psychological workplace injury
  • Other
  • Chart: Employers' Liability Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Agriculture, mining, manufacturing and construction companies
  • Commercial trade
  • Services firms
  • Chart: Major Market Segmentation for the Employers' Liability Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Employers' Liability Insurance

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Employers' Liability Insurance Industry

  • Industry Globalization
    Victorian WorkCover Authority, Insurance and Care NSW, WorkCover Queensland, Return To Work Corporation of South Australia,
  • Table: Victorian WorkCover Authority - financial performance
  • Table: Insurance and Care NSW - financial performance
  • Table: WorkCover Queensland - financial performance
  • Table: Return To Work Corporation of South Australia - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Employers' Liability Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Employers' Liability Insurance Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Employers' Liability
  • The liability that employers have towards their employees during the time employed. Refers to workers' compensation.
  • Self-Insurers
  • Typically large companies registered with APRA and approved by their respective state regulatory bodies to issue their own workers' compensation insurance.
  • Underwrite
  • Industry operators assume liability and assign premiums to the extent of a certain sum by way of insurance.
  • Workcover Authority
  • The state-owned regulator and often the underwriter of workers' compensation insurance in many states. Sets levels of premium and grants approval for third party underwriters.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Employers' Liability Insurance market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

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    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Employers' Liability Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

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