Disability continues to drag on life/risk
Disability insurance continues to be a problem area for Australia's major life/risk insurers, according to the latest data released by the Australian Prudential Regulation Authority (APRA).
While the March quarter APRA data revealed the life/risk sector to be in reasonably good shape, it also revealed continuing negative returns with respect to disability-related products.
The APRA analysis said net profit after tax for risk products was $378 million in the March quarter 2016, with individual lump sum risk contributing $361 million, but with individual disability income insurance contributing negative $94 million.
It said group lump sum risk contributed $136 million and group disability income insurance contributed negative $25 million.
Emphasising the contrasting fortunes of products types, the data showed that in the year ending March 2016, net profit after tax was $1.4 billion, with individual lump sum risk contributing $1.1 billion,
Individual disability income insurance contributed negative $18 million, group lump sum risk contributed $386 million and group disability income insurance contributed $21 million.
Recommended for you
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.
TAL has introduced four new courses to its Risk Academy focused on ethical dilemmas as part of Ethics Month to help advisers meet their CPD requirements.
Unadvised Australians believe they need $2 million to retire comfortably, according to Colonial First State, a wide variance compared to advised individuals which estimate $1.3 million.
