Job losses predicted as the industry looks overseas
Thousands of Australian insurance jobs will move offshore over the next 20 years as companies centralise operations for efficiency gains, a report into the services sector claims.
The National Institute of Economic and Industry Research predicts 16% of general insurance jobs will be lost to Australia in the next 20 years.
More than 850,000 jobs in the service sector – of which banking, insurance and finance are major parts – could be axed in the biggest expatriation of Australian jobs in history, the report states.
The report says high-skill jobs are among those at risk. It says companies will move services abroad to cut costs, increase sales, improve productivity, and access other markets.
The institute says this creates opportunities for “proactive countries”, but that Australia has been slow to act.
Services unions have now called on the Federal Government to introduce legislation to prevent jobs being lost.
Finance Sector Union (FSU) National Secretary Leon Carter told insuranceNEWS.com.au “thousands” of insurance jobs are on the line.
“Once offshoring starts it will be hard to stop,” he said. “Insurance is already a competitive area and there is [a desire] to reduce cost-to-income ratios. What we can’t allow to happen is a race to the bottom. There will always be someone doing it cheaper.”
The services sector accounts for four out of five of Australian jobs and about 80% of the country’s economic activity.
Union leaders recently met Federal Service Economy Minister Craig Emerson and proposed a tripartite group made up of the Government, employers and unions to examine ways to resist the threat.
The National Institute of Economic and Industry Research predicts 16% of general insurance jobs will be lost to Australia in the next 20 years.
More than 850,000 jobs in the service sector – of which banking, insurance and finance are major parts – could be axed in the biggest expatriation of Australian jobs in history, the report states.
The report says high-skill jobs are among those at risk. It says companies will move services abroad to cut costs, increase sales, improve productivity, and access other markets.
The institute says this creates opportunities for “proactive countries”, but that Australia has been slow to act.
Services unions have now called on the Federal Government to introduce legislation to prevent jobs being lost.
Finance Sector Union (FSU) National Secretary Leon Carter told insuranceNEWS.com.au “thousands” of insurance jobs are on the line.
“Once offshoring starts it will be hard to stop,” he said. “Insurance is already a competitive area and there is [a desire] to reduce cost-to-income ratios. What we can’t allow to happen is a race to the bottom. There will always be someone doing it cheaper.”
The services sector accounts for four out of five of Australian jobs and about 80% of the country’s economic activity.
Union leaders recently met Federal Service Economy Minister Craig Emerson and proposed a tripartite group made up of the Government, employers and unions to examine ways to resist the threat.