Page 10 - Australasian Paint & Panel Magazine Sep-Oct 2020
P. 10

                                AUSTRALIA’S MOTOR INSURANCE MARKET
to contract in 2020 due to COVID-19, says GlobalData.
The Australian motor insurance market is forecast to contract by 4.4% in 2020 due to COVID-19, a sharp de-
cline from 3.6% growth in 2019, ac- cording to GlobalData, a leading data and analytics company. As per the lat- est data, the motor insurance business is expected to register a compound an- nual growth rate (CAGR) of 1.6% over
FY 2019–2024, primarily due to the on- going economic uncertainty and long- term downturn in the auto sector.
Deblina Mitra, Insurance Analyst at GlobalData, comments: “Automobile sales in Australia declined by 7.8% during 2018– 2019 due to tighter lending conditions and lower consumer spending. New vehicle sales in July 2020 declined by 19.2% year- on-year due to the economic impact of COVID-19. These resulted in lower premi- um collections for motor Insurers.”
Mitra said: “Motor insurers are thereby expected to face further pres- sure. To drive premium growth, in- surers such as Allianz and Budget Di- rect are offering up to 15% discount on comprehensive motor insurance for new online policies.”
Companies are also looking at product innovations to increase sales. Short-term car insurance and pay-as-you-go models are being adopted by companies to in- crease sales.
“The recent second wave of COVID-19 infections could further derail the recov- ery process for the motor insurance in- dustry. Although, recovery in motor in- surance industry is expected to begin from 2021, the growth is expected to be a subdued one,” she said.
                             CAPRICORN HAS JOINED FORCES WITH
leading rewards and incentives business innovators 212F to create a world-class loyalty programme and created a new website:
The new site offers members a huge se- lection of quality merchandise across a range of product categories with over 1000 different products available.
Members can also reward their staff with gift vouchers, food and beverage products, hampers and workshop prod- ucts. Members can still use their points to pay their Capricorn Trade Accounts too.
Capricorn has also launched an online resource that provides wide-ranging content for all stages of business.
CapHub is a content portal providing easy access to valuable expert business tips and advice, automotive workshop
hacks and important industry data to help develop and improve your business. CapHub also includes a highly re- searched snapshot of the auto repair in- dustry from the perspective of members. The Capricorn State of the Nation Report 2020 is the culmination of Capricorn's most substantial research project ever un- dertaken. The landmark report combines feedback from over 1,500 automotive workshop owners and operators located across Australia and New Zealand, to pro-
vide a range of insights on the industry. This new Capricorn online business resource includes a variety of regularly updated automotive aftermarket busi- ness relevant articles and information
within the business section.
More information: caphub.

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