Industries Insurance Overview - Ernst & Young - Australia

Twelve months on from the financial crisis, and with business confidence returning, it is clear that Australian insurers have weathered the downturn with relative success. In this issue of Insurance agenda, we ask whether insurers are older and wiser, one year on from the global financial crisis. Our second article considers how the insurance industry can keep pace with new technologies, such as social networking sites which have huge potential to develop engage and loyal customers at relatively low cost.

On 20 October 2009, the IASB (the Board) met to continue the debate on accounting for insurance contracts. Other issues discussed included, unbundling of components of insurance contracts, the presentation of the performance statement and measurement of insurance liabilities. Read our summary of these updates in the October edition of Insurance accounting alert (pdf, 224.6kb). 

How do you manage through the recession and position your company for growth? Our insurance representatives and other sector leaders conducted over 1500 client meetings and identified some overarching themes. Sound risk management strategies, an extended market reach and improved business model could mean the difference between surviving and thriving.

The IASB will further their discussions on the measurement approach for insurance contracts on Friday, 18 September. Should the Board opt for the updated IAS 37 model, the conflict with the FASB’s approach would result in the inclusion of both bases in the Exposure Draft of a new standard. Read Insurance accounting alert (pdf, 191.8kb) for a summary of these updates.

In this month's edition of Insurance agenda we examine climate change, the use of data and the impact of the financial crisis on the insurance sector, all of which have operational and strategic implications for insurers.

In this edition of Insurance agenda (pdf, 103kb) we examine how global regulatory changes will impact the Australian insurance industry and how Australian insurers will need to respond. In addition we ask the question ‘Is credit rating broken?’ (pdf, 84kb)  particularly the perceived failures in the credit rating agencies' rating of sub-prime mortgage securities and what this means for insurers.

Financial services briefing (pdf, 2.9mb) brings together Ernst & Young’s collective insights from our global Banking & Capital Markets, Insurance and Asset Management networks. Financial services briefing also includes significant risk, corporate governance, financial reporting and regulatory updates.

The insurance industry today is facing an extraordinary confluence of adverse macroeconomic trends along with unique challenges and opportunities. As balance sheets weaken, revenue growth slows and margins come under pressure, the urgency for Insurance companies to reduce costs, strengthen risk management and stabilise their capital position is increasing. This paper (pdf, 2.35mb) addresses how insurance companies can adjust their perspectives as they contemplate cost reduction.