Life market remains static
The flow of new funds into life insurance products remained virtually static throughout 2001, according to figures from the latest quarterly report into the life insurance industry by Plan For Life Actuaries and Researchers.
According to Plan for Life, life insurance premium inflows totalled $39.6 billion in the 12 months to the end of December 2001, an increase of only 0.1 per cent on the 12 months to December 2000.
The result came despite the best efforts of the risk market, which finished the best performing sub-sector of the life industry for the year.
During 2001, inflows into the risk market rose by 12.6 per cent to total $3.3 billion for the year.
The best performer in this sector wasCiticorp Life, which grew by 34.9 per cent over the year, increasing its share of the total market to 3.0 per cent.Westpaclife also did well, growing by 26.4 per cent, as did the combinedNational Australia Bank/MLC, which grew by 19.7 per cent.
By contrast, the ordinary (non-superannuation) investment market declined markedly, with inflows falling by 25 per cent compared to the previous year to reach $903 million.
A notable exception in this market was the American International group, which grew its ordinary (non superannuation) investment business by 29 per cent, the only one of the top 10 providers in this sub-sector to record positive premium inflows.
The retirement income component of the life industry, made up of short term annuities, complying longer term annuities and allocated annuities and pensions, also fell slightly.
The sector shrunk by 4.7 per cent compared to the previous year, despite the efforts ofSuncorp, which grew by 136.3 per cent andAXA Australia, which grew by 38.2 per cent.
Both the individual and group superannuation sectors of the life industry rose only marginally throughout 2001, growing by 0.6 and 2.1 per cent respectively.
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