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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 most recently available Skills Forecast, 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

The Financial Services IRC was not required to submit an annual update to their 2019 Skills Forecast during 2020. As such, the version published in 2019 remains the most recently published Skills Forecast for this industry.

Insurance and superannuation IRC’s

Employment trends

Please note: any employment projections outlined below were calculated by the Australian Bureau of Statistics prior to COVID-19.

Employment snapshot

Employment in the Insurance and Superannuation Funds sector increased between 2000 and 2020. Employment peaked in 2020 at 121,100, however, it is projected to decline to 99,100 by 2024. In the Auxiliary Insurance Services sector, employment was more variable between 2000 and 2020, with peaks in 2005, 2011 and 2017. Following a sharp decline in 2018 to 12,800 workers, the employment level rose in 2018 and 2019. There were 24,100 employed in 2020, 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 and rising further in 2019. During 2019, the majority of enrolments in Insurance and Superannuation-related qualifications were at the certificate III and diploma or higher level, with no training occurring at the certificate I or certificate II level. In 2019, 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.

In 2019, the vast majority of Insurance and Superannuation-related qualifications were delivered by private training providers (98%), and nearly all subjects were funded through domestic fee for service (96%). Queensland and New South Wales had the highest proportion of students enrolled in Insurance and Superannuation-related qualifications at 24% and 22% respectively.

The majority of training was delivered in Victoria (83%) and New South Wales (13%).

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 2019. 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 2019, Tasmania reported the largest proportion of Insurance and Superannuation-related apprentices and trainees, with 41%, followed by Queensland with 33%.

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 were communication skills and building effective relationships. The most advertised occupations were Management and Organisation Analysts followed by Insurance Investigators, Loss Adjusters and Risk Surveyors. The top employers were AMP Limited and Allianz Australia Limited. The top locations for job advertisements were New South Wales and Victoria.

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 521,510 to 587,100) and the number of members growing 12% (987,540 to 1,107,060). 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 Deloitte Center for Financial Services report, 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.

The Deloitte Australia article, The Road to Recovery for Insurers, highlights the impact on Australia and insurers of the one in 100-year bushfires over the 2019–20 summer and the COVID-19 pandemic. These events drastically impacted insurers as they immediately responded to the needs of customers and shifted priorities and operations in innovative ways to meet the evolving health and economic crisis. As a first responder, the Insurance sector, along with the Financial Services industry, acted as an ‘intensive care unit' and helped financially support customers throughout. Insurers will need to carefully consider what they can do to achieve real value creation in the recovery phase to meet the nation's increasing and constantly evolving expectations. Consideration of the 5 'C's is critical: Customers, Coverage, Communication, Claims and Complaints.

Links and resources

Data sources and notes

Department of Employment 2020, 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 2024
  • by ANZSCO, selected occupations, employment projections to May 2024
    • 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 2020, Employed persons by Industry group of main job (ANZSIC), Sex, State and Territory, November 1984 onwards, 6291.0.55.003 - EQ06, viewed 1 August 2020 https://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6291.0.55.003May%202020?OpenDocument

  • Employed total by ANZSIC 2 & 3 digit Insurance and Superannuation Funds Industry and Auxiliary Insurance Services Industry, 2000 to 2020, 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
    • FNS30511 - Certificate III in General Insurance
    • FNS30515 - Certificate III in General Insurance
    • FNS30610 - Certificate III in Insurance Broking
    • FNS30615 - Certificate III in Insurance Broking
    • FNS30215 - Certificate III in Personal Injury Management
    • FNS30210 - Certificate III in Personal Injury Management (ClaimsManagement)
    • FNS41410 - Certificate IV in General Insurance
    • FNS41411 - Certificate IV in General Insurance
    • FNS41415 - Certificate IV in General Insurance
    • FNS41710 - Certificate IV in Insurance Broking
    • FNS41512 - Certificate IV in Life Insurance
    • FNS41515 - Certificate IV in Life Insurance
    • FNS41611 - Certificate IV in Loss Adjusting
    • FNS41915 - Certificate IV in Personal Injury Management
    • FNS42115 - Certificate IV in Personal Injury Management
    • FNS40310 - Certificate IV in Personal Injury Management (Claims Management)
    • FNS40410 - Certificate IV in Personal Injury Management (ReturntoWork)
    • 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
    • FNS50110 - Diploma of Personal Injury Management
    • FNS50115 - Diploma of Personal Injury 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 to 2019 program enrolments
  • 2015 to 2019 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 2019 commencements
  • 2010 to 2019 completions
  • 2019 apprentices and trainees in-training October to December 2019 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 2020, Labor Insight Real-time Labor Market Information Tool, Burning Glass Technologies, Boston, viewed July 2020, https://www.burning-glass.com.

Data shown represent most requested generic skills, occupations and employers according to internet job postings in Australia between July 2017 and June 2020 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
    • 5996 Insurance Investigators, Loss Adjusters and Risk Surveyors
    • 2211 Accountants
    • 6113 Sales Representatives
    • 5412 Information Officers
    • 63 Insurance and Superannuation Funds
    • 642 Auxiliary Insurance Services.
Updated: 23 Nov 2020
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