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Employer master trusts are expected to make the most significant gains in market share for insurance premium income in the next 15 years, at the cost of premium income for in-super premiums recommended by advisers, according to research from Rice Warner Actuaries.
However, insurance premium income managed by advisers outside of super will remain relatively steady and maintain its majority market share, the report showed.
Employer master trusts look set to gain double their market share in the years to 2024, according to Rice Warner. The report pointed to a broader growth in sales in wholesale and direct insurance, and a reduction in retail business by 2024.
Furthermore, by 2024, the retail share of the market will have fallen from this year’s 70 per cent to 61 per cent, with wholesale business correspondingly increasing from 30 per cent to 39 per cent.
The Rice Warner report said the growth in the market would be driven through innovation in the delivery of both full and limited advice, increases in default levels of risk insurance by superannuation funds, and improved auto-underwriting and other technologies, among other drivers.
The group also predicted direct-risk insurance sales — such as those made through outbound telephone calls, mail, the internet, shopfronts and other channels — will become increasingly important in terms of business volumes.
Between now and 2024 the average levels of death cover and income protection cover per head of the working age population are expected to increase by 106 per cent and 163 per cent respectively.
