The Australian insurance industry is “quite progressive” in global terms, and is experiencing similar trends to UK and US companies, says Owen Ryan, General Managing Partner of Deloitte’s Global Insurance Division. On a visit to Australia last week, he said the local market is “far more consolidated” than other international insurance markets.

He told Sunrise Exchange News the biggest issue for Australian insurers is to “not repeat the past mistake of returning to a soft market”.

“Insurers can’t afford it, and they must maintain strong underwriting discipline to ensure profits are consistent,” Mr Ryan said. “Preserving their capital should be at the forefront of their agenda.”

He says Australia’s focus on the bancassurance model and the small size of the industry has meant local insurers have looked to their own backyard when expanding. “Although other counties like America and the UK haven’t experienced the same kind of scale of market consolidation as Australia, we might see that in the future,” he said. “I’d expect to see some very large-scale US mergers and acquisitions in the next six to 18 months.”