Individual risk sales still growing
New individual lump sum risk business in the 12 months to June 2011 increased 3.5 per cent to just over $1 billion, a significant slowdown on the 21.5 per cent growth seen to June 2009, according to data and research house DEXX&R.
AMP/AXA was the new leader in terms of market share in total risk business in-force annual premiums, growing 6.7 per cent on a like for like basis compared to the same time last year to $1.54 billion. Next was MLC, which grew 6 per cent to $1.45 billion.
Only AMP/AXA and OnePath recorded an increase in individual lump sum new business, up 8.9 per cent (on a like for like basis) and 7.9 per cent respectively, according to DEXX&R. Total individual lump sum business was up 8.8 per cent for the industry, with the biggest growth seen at OnePath (up 12.3 per cent) and Tower (up 10.7 per cent).
New individual disability business grew 8.2 per cent to $381 million, bringing total disability in-force annual premiums to $1.73 billion. The biggest increases were seen at OnePath (up 30 per cent) and Tower (up 23.2 per cent).
Total group risk new business dropped 15 per cent in the period to $530 million, but DEXX&R noted that large fluctuations could occur due to the timing of large premium payments by group policyholders, typically industry funds.
Total in-force group risk business was up 8.6 per cent to almost $3 billion, led by AIA which was up 14 per cent to $645 million and Tower, up 30 per cent to $605 million.
DEXX&R managing director Mark Kachor said the high growth seen in the 12 months to June 2009 occurred because when equities go down - as they did during the global financial crisis - there is an increase in risk business, and growth has been tapering since then to more normalised levels.
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