Employers' Liability Insurance in Australia - Industry Market Research Report

On the job: Increases in investment revenue and the total labour force have boosted performance

The Employers' Liability Insurance industry's primary role is to support employees recovering from workplace incidents by organising compensation and medical benefits. The largest employers' liability insurers are the statutory authorities of the state governments. Employers' liability insurance is mandatory for many businesses. As a result, premium revenue is affected by the number of employees in the labour force and is linked to employees' remuneration. While this premium revenue stream tends to be consistent and predictable, investment income is a heavily volatile stream. 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 anticipated to increase at an annualised 6.4% over the five years through 2022-23, to $24.2 billion. This growth is attributable to rises in both the premium and investment income streams. The total labour force has risen over the past five years, boosting premium revenue. Additionally, investment revenue greatly increased during the two years to 2021-2022 following the COVID-19 pandemic, as economic indicators recovered across key investment markets. However, industry revenue is expected to decline by 1.5% in the current year, due to an anticipated drop in investment revenue performance following global supply chain difficulties.

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

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.