The insurance market in Australia is considered to be mature and well structured.
In Australia, life insurance, general insurance and health insurance form the core of the insurance market. Most large insurance companies specialise in all forms of insurance whilst some of the larger companies have broadened their reach to offer more general financial services to clients.
Insurance is important in all of our lives, yet for many the insurance system, its policies and fineprint, can be daunting and confusing. Those who undertake financial training courses will receive particular education about the insurance industry, but essentially insurance pools against the risk of future events which are not certain to occur.
As mentioned, types of insurance in Australia predominantly fall into three primary categories:
Life Insurance:
Life insurance, disability income insurance and superannuation investment products are three of the life insurance products sold in Australia. One of the features that separates Australia and its approach to insurance from that of other countries is that some Australian insurers do offer a lump sum total and permanent disability insurance rather than payment received in installments.
AMP Limited, Allianz Australia and AXA make up three of the largest and most prominent Australian life insurance companies. Friendly societies and credit unions are also providers of life insurance.
General Insurance:
General insurance products sold in Australia can be classified into two categories: liability insurance and property insurance.
Liability insurance includes Compulsory Third Party (CTP) motor insurance, worker’s compensation, professional indemnity insurance, public liability insurance and insurance for businesses. Some of these insurance types, including CTP and worker’s compensation are required by law but are not uncommonly different from state to state.
Property insurance refers more to home and contents insurance, travel insurance and comprehensive insurance for motor vehicles.
Some of the major general insurance companies in Australia are: Allianz Australia, Insurance Australia Group, QBE Insurance and Suncorp-Metway.
Health Insurance:
Medicare is the Australian Government’s basic universal health insurance. For Australians who wish for insurance to cover the services that are not part of Medicare or to receive services not provided through Medicare, private health insurance is purchased.
Through the Australian taxation system, private health insurance is encouraged for middle to high income earners. Most taxpayers are subject to a 1.5% Medicare Levy but an additional 1% Medicare Levy Surcharge is incurred by taxpayers earning more than $76,000 per annum who do not have their own private health insurance cover.
In Australia, the prudential aspects of insurance are overseen by the Australian Prudential Regulation Authority (APRA). APRA is responsible for setting and enforcing standards to ensure that the financial promises made by companies and institutions are complied with and that the financial system is stable, efficient and competitive. APRA is tasked with investigating any insurance company that they believe are failing to fulfil its promises and operate in a legitimate and professional way.
In Australia, the well-developed insurance market responds to the huge demand for insurance products and services. Increasingly, insurance companies are seeing a rise in demand for products such as life insurance as Australians prepare for later years and put plans in place to care for their families after death or if injury was to occur. As a result of high value deals on offer, some companies are now sought after by international clients.
The regulation of the insurance industry in Australia has rendered insurance to be of a very good standard. This standard, coupled with the improved integrity of the industry, has resulted in quality insurance products for customers and oftentimes, has enabled customers to save money.
I would like to have training related to the insurance and precisely car insurance business.
Would you kindly advise on what training available in that area and how possible to have the study online due to my work load.
Looking forward to hearing from you, Thanks