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Insurance and Superannuation

Overview

This page provides information and data on the Insurance and Superannuation sector, which is one component of the Financial Services industry, and includes personal injury management, insurance broking, general insurance, life insurance, personal injury and disability insurance, loss adjusting and superannuation.

Insurance provides Australians with protection for unforeseen expenses incurred in relation to health, housing and death. The three main insurance areas are health, life and general (mostly car and home) insurance.

Superannuation affects the lives of the majority of Australians and sound management of these compulsory savings are vital to ensure financial stability in retirement. In Australia, there are over 15 million members of superannuation funds, who collectively have over $2.7 trillion in superannuation assets.

Nationally recognised training for Insurance and Superannuation is delivered under the FNS – Financial Services Training Package.

Information sourced from the Financial Services IRC’s 2019 Skills Forecast.

For information on other financial services, see the Financial Services cluster page.

All data sources are available at the end of the page.

IRC and skills forecasts

Employment trends

Employment snapshot

Employment in the Insurance and Superannuation sector increased between 2000 and 2019, with a peak in 2018 of 102,500 workers. In 2019 there were 91,200 workers in the sector, which is projected to grow to 99,100 by 2024. In the Auxiliary Insurance Services sector, employment was more variable between 2000 and 2019, with peaks in 2005, 2011 and 2017. Following a sharp decline in 2018 to 12,800 workers, the employment level rebounded in 2019 to 21,800. However, employment is projected to decline to 19,600 by 2024.

The largest proportion of workers in a VET-related occupation in the Insurance and Superannuation sector are Insurance, Money Market and Statistical Clerks, an occupation that is projected to decline in employment levels between 2019 and 2024 by 4%. Insurance Agents also has a projected decline of around 1%. All other VET-related occupations in the sector are predicted to see employment levels grow over the same period. In the Auxiliary Insurance Services sector, Financial Brokers make up the largest occupational proportion, an occupation that is predicted to increase in employment levels between 2019 and 2024 by nearly 9%.

 

 

Training trends

Training snapshot

Both program enrolments and completions in Insurance and Superannuation-related qualifications decreased between 2015 and 2017 before significantly increasing in 2018. During 2018, the majority of enrolments in Insurance and Superannuation-related qualifications were at the diploma level or higher, with no training occurring at the certificate I or II level. In 2018, there were more enrolments in Insurance-related qualifications than Superannuation-related qualifications. Qualifications in the area of Superannuation have a single intended occupation of Financial Investment Manager. Qualifications in the area of Insurance have a wider range of intended occupations, with the most common being Insurance Agent.

All Insurance and Superannuation-related qualifications were delivered by private training providers, and nearly all subjects were funded through domestic fee for service arrangements in 2018 (94%). New South Wales and Victoria have the highest proportion of students enrolled in Insurance and Superannuation-related qualifications at 28% and 20% respectively. Training was mainly delivered in Victoria (68%), with most of the remaining portion delivered in New South Wales (28%).

Apprentice and trainee commencements in Insurance and Superannuation-related qualifications rose strongly between 2010 and 2013, before declining sharply during 2014 and remaining at similar levels to 2018. Completions have followed a similar pattern, though offset by a year, peaking in 2014 before falling sharply in 2015. Apprentices and trainees in this sector most often have an intended occupation of Insurance Agent. In 2018, New South Wales reported the largest proportion of Insurance and Superannuation-related apprentices and trainees, with 29%, followed by Queensland with 25%, and South Australia with 24%.

For more data specific to your occupation, industry or training package, visit NCVER’s VET students by industry. If you are prompted to log in, select cancel and you will continue to be directed to the program.

For more data specific to your region visit NCVER’s Atlas of Total VET.

If you are interested in extracting NCVER data to construct tables with data relevant to you, sign up for a VOCSTATS account.

Industry insights

Industry insights on skills needs

The Financial Services IRC’s 2019 Skills Forecast suggests the top priority skills for the Insurance and Superannuation sector include health and safety skills, teamwork and communication, and problem solving skills. This is in addition to sector specific technical and multi-disciplinary skills. The top three generic skills focus primarily on soft skills including customer service, critical thinking, and learning agility. Data analysis is rated as the fourth most important generic skill for the sector.

According to the job vacancy data, the top generic skills requested by employers in the Insurance and Superannuation sector were communication skills and building effective relationships. The most advertised occupations were Management and Organisation Analysts followed by Sales Representatives. The top employers were Allianz Australia Limited and AMP Limited.

According to the above Skills Forecast there are a number of FinTech innovations impacting insurance and superannuation services, including:

  • Computer automated underwriting allows for the reduction of documentation and streamlines the approval process in risk modelling
  • Self-investment applications, like Stockspot and Selfwealth, allow for the easy comparison of funds and management of funds.

The Skills Forecast also outlines the potential impacts of demographic changes, specifically the ageing population, for insurance and superannuation services. The number of Australians over 65, the core demographic demanding these services, is projected to increase to 21% of the population by 2066. The ageing population will drive strong growth for health and life insurance and superannuation services over the medium to long term. This continued demand will require a growing number of health insurance workers across the board, specialising in services for over 65s. The ageing population will continue to drive demand on the National Disability Insurance Scheme (NDIS). The NDIS therefore presents a significant growth opportunity for insurance assessors specialising in assessments for people with disability.

The Skills Forecast states that superannuation assets are forecast to hit $4.3 trillion by 2032, exceeding the value of the banking sector, as the system matures and wages increase. Demographic changes will shape the Superannuation sector by:

  • Increasing the proportion of superannuation assets held in the retirement phase, which are forecast to increase from 30% of superannuation assets to 40% over the next decade. Given the typically conservative investment profile of retirees, this will increase the proportion of assets that are invested defensively (in products such as bonds) and bolster the use of derivatives and other defensive overlays to ensure a steady revenue stream. Understanding the needs of a client in retirement and communicating these risks will be vitally important to Financial Advisers in the sector.
  • Driving demand for self-managed superannuation funds (SMSFs), with 85% of self-managed super fund members being over the age of 45 and over a third being over 65. SMSFs continue to grow, with the number of funds growing 13% over the last five years (from 521,511 to 587,092) and the number of members growing 12% (987,535 to 1,107,058). With this trend set to continue, financial services workers will play more of an advisory and transactional role in assisting SMSF members to manage their own funds, rather than managing the funds on the member's behalf.

The report by the Deloitte Center for Financial Services, 2019 Insurance Outlook: Growing Economy Bolsters Insurers, But Longer-term Trends May Require Transformation, states that robotic process automation and artificial intelligence that can automate manual tasks are rapidly infiltrating the Insurance sector, remaking or eliminating jobs that are labour intensive and even some with cognitive requirements. Insurers will be challenged to retrain and repurpose workers impacted by tech upgrades to make more productive use of their time and talent. To start, most insurers are decomposing jobs to analyse how work is currently performed, determine which capabilities can and should be automated, and establish what new skill sets may be required to maximize the value employees can bring in the wake of automation.

Links and resources

Data sources and notes

Department of Employment, 2018, Employment Projections, available from the Labour Market Information Portal

  • by ANZSIC 2 & 3 digit Insurance and Superannuation Funds Industry and Auxiliary Insurance Services Industry, employment projections to May 2023
  • by ANZSCO, selected occupations, employment projections to May 2023
    • Financial Brokers
    • Financial Investment Advisers and Managers
    • General Clerks
    • Insurance Agents
    • Insurance Investigators, Loss Adjusters and Risk Surveyors
    • Insurance, Money Market and Statistical Clerks.

Australian Bureau of Statistics 2018, Employed persons by Industry group of main job (ANZSIC), Sex, State and Territory, November 1984 onwards, 6291.0.55.003 - EQ06, viewed 1 November 2018 http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6291.0.55.003May%202018?OpenDocument

  • Employed total by ANZSIC 2 & 3 digit Insurance and Superannuation Funds Industry and Auxiliary Insurance Services Industry, 2000 to 2018, May Quarter.

Australian Bureau of Statistics 2017, 2016 Census – employment, income and unpaid work, TableBuilder. Findings based on use of ABS TableBuilder data.

  • Employment level by 2 & 3 digit Insurance and Superannuation Funds Industry and Auxiliary Insurance Services Industry, and 4 digit level occupations to identify the relevant VET-related occupations in the industry as a proportion of the total workforce.

Training data has been extracted from the National VET Provider Collection, Total VET Students and Courses from the following training package or qualifications:

  • FNS – Financial Services Training Package
  • Insurance
    • FNS30210 - Certificate III in Personal Injury Management (Claims Management)
    • FNS30215 - Certificate III in Personal Injury Management
    • FNS30511 - Certificate III in General Insurance
    • FNS30515 - Certificate III in General Insurance
    • FNS30610 - Certificate III in Insurance Broking
    • FNS30615 - Certificate III in Insurance Broking
    • FNS40310 - Certificate IV in Personal Injury Management (Claims Management)
    • FNS40410 - Certificate IV in Personal Injury Management (Return to Work)
    • FNS41410 - Certificate IV in General Insurance
    • FNS41411 - Certificate IV in General Insurance
    • FNS41415 - Certificate IV in General Insurance
    • FNS41512 - Certificate IV in Life Insurance
    • FNS41515 - Certificate IV in Life Insurance
    • FNS41611 - Certificate IV in Loss Adjusting
    • FNS41710 - Certificate IV in Insurance Broking
    • FNS41915 - Certificate IV in Personal Injury Management
    • FNS42115 - Certificate IV in Personal Injury Management
    • FNS50110 - Diploma of Personal Injury Management
    • FNS50115 - Diploma of Personal Injury Management
    • FNS51110 - Diploma of General Insurance
    • FNS51115 - Diploma of General Insurance
    • FNS51210 - Diploma of Insurance Broking
    • FNS51215 - Diploma of Insurance Broking
    • FNS51312 - Diploma of Life Insurance
    • FNS51315 - Diploma of Life Insurance
    • FNS51410 - Diploma of Loss Adjusting
    • FNS51415 - Diploma of Loss Adjusting
    • FNS51915 - Diploma of Personal Injury and Disability Insurance Management
    • FNS60110 - Advanced Diploma of Insurance Broking
  • Superannuation
    • FNS40910 - Certificate IV in Superannuation
    • FNS40911 - Certificate IV in Superannuation
    • FNS40915 - Certificate IV in Superannuation
    • FNS50710 - Diploma of Superannuation
    • FNS50711 - Diploma of Superannuation
    • FNS50715 - Diploma of Superannuation
    • FNS60510 - Advanced Diploma of Superannuation
    • FNS60513 - Advanced Diploma of Superannuation
    • FNS60515 - Advanced Diploma of Superannuation.

This includes superseded qualifications and training packages.

Data covers a range of selected student and training characteristics in the following categories and years:

  • 2015, 2016, 2017, 2018 program enrolments
  • 2015, 2016, 2017, 2018 program completions.

Total VET students and courses data is reported for the calendar year. Program enrolments are the qualifications, courses and skill-sets in which students are enrolled in a given period. For students enrolled in multiple programs, all programs are counted. Program completion indicates that a student has completed a structured and integrated program of education or training. Location data uses student residence. Subject enrolment is registration of a student at a training delivery location for the purpose of undertaking a module, unit of competency or subject. For more information on the terms and definitions, please refer to the Total VET students and courses: terms and definitions document.

Low counts (less than 5) are not reported to protect client confidentiality.

Percentages are rounded to one decimal place. This can lead to situations where the total sum of proportions in a chart may not add up to exactly 100%.

FNS – Financial Services Training Package apprentice and trainee data has been extracted from the National Apprentice and Trainee Collection, including:

  • 2010 to 2018 commencements
  • 2010 to 2018 completions
  • 2018 apprentices and trainees in-training October to December 2018 collection, by qualification and state and territory of data submitter.

Priority skills data have been extracted from the Financial Services IRC’s 2019 Skills Forecast.

Job vacancy data have been extracted from Burning Glass Technologies 2019, Labor Insight Real-time Labor Market Information Tool, Burning Glass Technologies, Boston, viewed July 2019, https://www.burning-glass.com.

Data shown represent most requested generic skills, occupations and employers according to internet job postings in Australia between July 2016 and June 2019 filtered by ANZSIC and ANZSCO classification levels listed below.

  • Generic skills/Occupations
    • 63 Insurance and Superannuation Funds
    • 642 Auxiliary Insurance Services
  • Employers
    • 2247 Management and Organisation Analysts
    • 6113 Sales Representatives
    • 5996 Insurance Investigators, Loss Adjusters and Risk Surveyors
    • 2211 Accountants
    • 5412 Information Officers
    • 63 Insurance and Superannuation Funds
    • 642 Auxiliary Insurance Services.
Updated: 31 Mar 2020
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