David Worldon, founder of Accelerated Innovation, shares his insights on the intricacies of the Australian insurance market. He discusses the high concentration of major players and its impact on competition and innovation. Regulatory challenges post-Royal Commission add a layer of complexity, leading to a cautious industry. David emphasizes the urgency for insurers to innovate and align better with consumer needs, especially as rising premiums and underinsurance become critical issues. He envisions a transformative future fueled by collaboration and new strategies.
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insights INSIGHT
Purpose Drives Insurance Innovation
Insurance uniquely aligns consumer and insurer interests as both want to avoid claim events.
This alignment drives purposeful innovation efforts within the industry.
insights INSIGHT
Market Concentration Shapes Costs
Nearly half the Australian insurance market is held by two local carriers focused on Australia and New Zealand.
This concentration and regional risk exposure affect premium costs through reinsurance.
insights INSIGHT
Small State Carriers Face Consolidation
Australia has many small state-based insurers often linked to historic motoring clubs.
Recent acquisitions by major players signal ongoing market consolidation.
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David Worldon is the Founder of Accelerated Innovation, a boutique management consultancy specialising in insurance innovation. Last year they saved Australia’s largest insurers half a million dollars in fees and shaved a full year off their growth timelines. David has recently published the 2025 General Insurance Innovation Report, assessing and ranking how Australia’s largest insurers are innovating to address key industry challenges such as climate change, underinsurance, and rising premiums. His goal is to save leaders $20m in fees and 40 years of waiting to get shit done.
Episode SummaryThe video features a discussion centered around the Australian insurance market, highlighting its unique dynamics, challenges, and opportunities for innovation. Here are the key points:
Market Dynamics: The Australian insurance market is characterized by a high level of concentration, with a significant portion of the market share held by a few major players. This concentration influences competition and innovation within the industry.
Regulatory Environment: The industry is highly regulated, with recent interventions aimed at addressing systemic issues, particularly following a Royal Commission that scrutinized the sector for malpractice. This has led to a culture of risk aversion among insurers.
Innovation Focus: There is a growing emphasis on innovation, particularly in risk mitigation and preparing for natural disasters. Insurers are shifting their strategies to not only rebuild after disasters but to enhance infrastructure and resilience for future events.
Collaboration and Growth: Insurers are beginning to collaborate more effectively with each other and with government entities to address challenges such as underinsurance and protection gaps. This collaborative approach is seen as a pathway to strengthening the market.
Future Outlook: The discussion suggests a positive outlook for the next five to ten years, with expectations of increased appetite for risk and innovation. The market is viewed as ripe for new entrants, particularly global digital players, which could disrupt traditional distribution models.
Personal vs. Commercial Lines: Innovation is more pronounced in personal lines of insurance, particularly through direct sales channels. The commercial lines are slower to innovate, focusing primarily on enhancing broker experiences.
This episode is brought to you by The Future of Insurance thought leadership series, available globally from Amazon in print, Kindle and Audible audiobook.
The Future of Insurance 