The Insurance Council of Australia (ICA) represents the general insurance industry in entire Australia. It serves as a representative body for the insurance industry. Its members represent 95 percent of total premium income written by general insurers of private sectors.
Its members, both reinsurers, and insurers play a considerable role in the financial services system. The members of ICA are responsible for providing insurance products.
- Aim of ICA
- Role of Insurance Council of Australia
- Types of general insurance
- Objectives of Insurance Council of Australia
The products range from those purchased by large organizations and small businesses to those purchased by individuals. Products that are purchased by large organizations and small businesses are commercial property, product, and public liability insurance, directors’ and officers’ insurance and professional indemnity insurance.
Products that are purchased by individuals are travel-related insurance, home insurance, and motor vehicle insurance.
Statistics of March 2018 of Australian Prudential Regulation Authority display that $46.1 billion/annum of the gross written premium is generated by the private sector insurance industry. $119.2 billion of total assets is acquired by it.
Insurance industry grossly employs around 60,000 individuals. Every working day it pays around $118.7 million of claims.
The main aim of the Insurance Council of Australia is to expertly and efficaciously inspire and motivate the financial, political, business and social environment. It, in turn, results in promoting the member’s roles.
More security and insurance protection can be provided inside the community.
It educates the community and brings awareness among them regarding the role and benefits of general insurance.
ICA body represents the general insurance industry of Australia. It was formed on July 1, 1975. It took over Marine Underwriters Association and Fire Accident.
This body was established to behave as the main body for the general insurance industry in the whole of Australia. It is licensed under 1973 Insurance Act.
ICA members groups comprise of insurance and reinsurance companies, agencies from public and private sectors, and Lloyds underwriters. This body funds its undertakings through a membership fee.
A Chief Executive Officer is the head of the Insurance Council of Australia. Member companies elect Board of Directors.
Chief Executive Officer is accountable to a Board of Directors.
ICA represents its members. It efficiently handles the issues and effectuates industry positions by virtue of government lobby. It handles industry forums and public affairs. It deals with various services related to consumers and issues management.
There are 6 main types of general insurance regulated by ICA.
- Home and Contents Insurance
- Mortgage Loss Insurance/Mortgage Protection Insurance/ Lender’s Mortgage Insurance
- Motor Vehicle Insurance
- Travel Insurance
- Workers Compensation
- Business Insurance
The main objectives of ICA are mentioned below:
- ICA is the representative body for members’ interests in international as well as domestic affairs
- It enhances the image of the industry
- It is the representative body for the general insurance industry to the community as well as for government
- It improves the awareness in the community by educating them regarding the benefits and role that insurance plays
- It efficaciously manages the resources of ICA
- It efficiently helps and anticipates the insurance industry. As a result, all the general requirements of community and consumers are timely met
- It favors insurance services private-sector obligations
- It promotes and brings improvement in service standards in the insurance segments. It favors necessary self-regulation