Life risk sales down
After a long period of double-digit growth, the life insurance industry has recorded its first drop in sales, according to new DEXX&R figures.
DEXX&R found that, in the first quarter of 2013, total new sales dropped by 6 per cent to $2.4 billion, mostly due to a huge drop in group insurance.
Both individual lump sum risk (which includes death, total and permanent disability and trauma benefits) and individual disability business (including disability income and business expenses benefits) increased in the 12 months to end of March this year.
But total group risk new business decreased by 31.5 per cent to $678 million over the year.
However, the most recent figures need context, according to the researcher.
"Note that due to timing of large premium payments by group policyholders (typically industry funds), significant fluctuations can occur from quarter to quarter in reported group new premiums," DEXX&R stated.
In-force group risk premiums increased by 11 per cent, the report found.
AMP, CommInsure and TAL are dominating the sector in terms of market share, with MLC, AIA and OnePath also having been included in the top five.
However, the encouraging statistics coming out of the retail market do not mean it is time for complacency, as a separate report found directly marketed life insurance products were having an impact on the advised market, due to competitive pricing and products.
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