Commercial Motor Vehicle Insurance in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: September 2024
ANZSIC OD5516Revenue
$4.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
1,390
Businesses
49
Wages
$XXX.Xm
Commercial Motor Vehicle Insurance in Australia industry analysis
Rising premiums have catalysed the Commercial Motor Vehicle Insurance industry's revenue surge. Major providers have hiked their policy costs to cover rising payout expenses and reinsurance costs. Additionally, insurers have welcomed the relatively moderate occurrence of severe adverse weather events in recent years, which has allowed their profitability to expand. On top of their lucrative premium pricing results, insurer investment returns have remained high, supporting businesses in the sector. Compared to the benchmark year in 2019-20, when the pandemic stifled investment returns, equities have recovered and business confidence has risen. Overall, industry revenue is expected to have grown at an annualised 3.7% over the five years through 2024-25, to $4.4 billion, including an anticipated 4.9% jump in 2024-25.
Trends and Insights
- With premiums soaring, insurers have made the most of their policy arrangements. Commercial vehicle insurers have passed on rising costs to their clients, allowing them to reach new revenue heights.
- Warehousing and transport firms enlist the bulk of motor insurance. These sectors rely directly on their vehicle fleets as the main vessel for revenue, and their businesses are more sensitive to the related risks.
- Population hubs in the eastern states draw establishments to their large markets. Melbourne, Sydney and Brisbane are all high-traffic cities that demand convenient industry insurance services.
- Commercial motor insurance providers compete primarily on price. Following repeated considerable premium price hikes amid a broader inflationary environment, clients’ budgets are becoming more stretched, leading less expensive insurers to stand out from the crowd.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 3.7 % over the past five years, to reach an estimated $4.4bn in 2024.
Trends and Insights
Downstream businesses are continuing to look out for commercial vehicle insurance despite the rising costs
- Commercial vehicle owners and fleet operators are seeing more activity as business activity and population growth maintain their steady trajectory.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Road congestion is set to worsen, with insurance providers looking to capitalise
- As Australia’s population expands, traffic congestion will worsen. Congestion often leads to more minor or major accidents, inviting a larger market for insurers to cover repair costs.
Biggest companies in the Commercial Motor Vehicle Insurance in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
Suncorp | 1,160.7 | |
IAG | 1,051.2 | |
QBE Insurance | 370.2 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Commercial motor vehicle insurance, Compulsory third-party insurance and Public commercial motor vehicle insurance. Commercial motor vehicle insurance is the largest segment of the Commercial Motor Vehicle Insurance in Australia.
Trends and Insights
Commercial motor vehicle insurance premiums have ramped up and kept revenue flowing
- The commercial motor vehicle insurance segment accounts for all comprehensive and non-compulsory third-party insurance policies that insurers provide for commercial motor vehicles.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Car Insurance in Australia
Complementors
- General Insurance in Australia
- Insurance Brokerage in Australia
International industries
- Commercial Auto Insurance in the US
- Property, Casualty and Direct Insurance in Canada
- General Insurance in the UK
- Insurance in Ireland
- Property, Car & Other Non-Life Insurance in China
Table of Contents
About this industry
Industry definition
Industry firms provide insurance for vehicles used for business purposes. These include vehicles like trucks, vans, trailers, ambulances and buses. The industry also provides coverage for motor fleets.
What's included in this industry?
Commercial motor vehicle insuranceCompulsory third-party insurancePublic commercial motor vehicle insuranceCompanies
SuncorpIAGQBE InsurancePurchase this report to view all 5 major companies in this industry.
Related Terms
CTP INSURANCEFLEET INSURANCEUNDERWRITINGINSURTECHSTELEMATICSIndustry Code
ANZSIC 6322 - Commercial Motor Vehicle Insurance in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
With premiums soaring, insurers have made the most of their policy arrangements. Commercial vehicle insurers have passed on rising costs to their clients, allowing them to re...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Warehousing and transport firms enlist the bulk of motor insurance. These sectors rely directly on their vehicle fleets as the main vessel for revenue, and their businesses a...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Population hubs in the eastern states draw establishments to their large markets. Melbourne, Sydney and Brisbane are all high-traffic cities that demand convenient industry i...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Commercial motor insurance providers compete primarily on price. Following repeated considerable premium price hikes amid a broader inflationary environment, clients’ budgets...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The major Australian insurers have entrenched themselves in the commercial motor vehicle insurance market. IAG, Suncorp and other insurers service clients through a plethora ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Suncorp's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of IAG's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of QBE Insurance's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Suncorp, and factors influencing its performance in the industry
- Description and key data for IAG, and factors influencing its performance in the industry
- Description and key data for QBE Insurance, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Commercial Motor Vehicle Insurance industry is subject to a high level of regulation. The industry is overseen by the Australian Prudential Regulation Authority (APRA). I...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profitability has surged as insurers adjust their policy prices to outpace claims expenses. Ravaging weather conditions have eased in recent years, with insurers better able ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Commercial Motor Vehicle Insurance industry in Australia in 2024?
The market size of the Commercial Motor Vehicle Insurance industry in Australia is $4.4bn in 2024.
How many businesses are there in the Commercial Motor Vehicle Insurance in Australia industry in 2024?
There are 49 businesses in the Commercial Motor Vehicle Insurance industry in Australia, which has grown at a CAGR of 2.2 % between 2019 and 2024.
Has the Commercial Motor Vehicle Insurance industry in Australia grown or declined over the past 5 years?
The market size of the Commercial Motor Vehicle Insurance industry in Australia has been growing at a CAGR of 3.7 % between 2019 and 2024.
What is the forecast growth of the Commercial Motor Vehicle Insurance industry in Australia over the next 5 years?
Over the next five years, the Commercial Motor Vehicle Insurance industry in Australia is expected to grow.
What are the biggest companies in the Commercial Motor Vehicle Insurance market in Australia?
The biggest companies operating in the Commercial Motor Vehicle Insurance market in Australia are Suncorp, IAG and QBE Insurance
What does the Commercial Motor Vehicle Insurance in Australia include?
Commercial motor vehicle insurance and Compulsory third-party insurance are part of the Commercial Motor Vehicle Insurance industry.
Which companies have the highest market share in the Commercial Motor Vehicle Insurance in Australia?
The company holding the most market share in Australia is Suncorp.
How competitive is the Commercial Motor Vehicle Insurance industry in Australia?
The level of competition is moderate and decreasing in the Commercial Motor Vehicle Insurance industry in Australia.
