It isn’t just Australian insurers doing well in comparison with their global counterparts – another report by KPMG says Australian businesses in general are showing confidence in the future of their companies.

But it warns things could get ugly for Australia if businesses in the middle market struggle to raise equity or refinance this year.

KPMG Financial Advisory Services Partner Paul Thomson says Australia’s banking system has proven much more robust that those of Europe and North America, with our banks possibly helping drive confidence by pushing big business to get their balance sheets in order and their refinancing ready.

The audit, tax and advisory group surveyed more than 850 senior decision-makers from 29 countries, asking them about their day-to-day experiences in the recession.

The study found just 27% of Australian companies plan to change their short-term strategies to respond to the economic downturn, which bodes well for confidence in the local economy.

“Longer term we can expect more profound changes to our business landscape,” Mr Thompson said. “Just under half (43%) of companies [are] expecting to make major changes to their strategies as the effects of the global downturn bring about improved corporate discipline, with a focus on capital structures, cost reduction and the customer.”In Japan nearly 90% of businesses are planning radical changes to their business models in the next decade. Also in the high range are Singapore (84%), India (72%) and China (66%).

The report says Australians are still investing heavily in their businesses, with 33% investing this year, and the most favoured source of funds being retained profits.

Just over 50% of the companies polled around the world expect a recovery in 2010, with 22% saying 2011 and 7% saying 2012. Just 1% thought the world would still be in recession in 2014.