New premiums for individual death, total and permanent disability (TPD) and trauma business have fallen by an average of one per cent per annum for the third consecutive year, according to DEXX&R.
The Life Analysis Report based on data for the year ending December 2016 showed the industry wrote $1.3 billion of lump sum new business in the 12 months ending December 2016, down 0.7 per cent on the $1.31 billion recorded in the year to December 2015. This was after reaching a peak of $1.325 billion in the year to December 2013.
Amongst the top 10 life companies, MLC, TAL, Zurich and AMP recorded an increase in lump sum new business for the year ending December 2016.
Only MLC and Zurich recorded an increase in sales in each of the past three years. Zurich’s 2016 sales included new business flowing from its acquisition of Macquarie Life’s risk business in 2016.
In the December 2016 quarter, lump sum new business decreased after two consecutive quarters of increases, while new business in the December 2016 quarter totalled $336 million, a decrease of 10 per cent.
However, new business in the December 2016 was up eight per cent on the December 2015 quarter sales of $310 million.
Individual lump sum discontinuances peaked in December 2012 at 15.8 per cent but this has decreased in each of the four years since and at December 2016, it stood at 13.3 per cent.
Meanwhile total risk in-force business (individual and group) written by direct life companies increased by four per cent to $15.4 billion over the year to December 2016, up from $14.9 billion at December 2015.
The largest life companies were TAL, with a market share of 17.1 per cent, AIA with 14.7 per cent and AMP at 12.7 per cent.
