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.
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