Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Life risk sales fall to five-year low

life-risk/DEXX&R/AIA-Australia/comminsure/TAL/

28 June 2019
| By Laura Dew |
image
image image
expand image

According to DEXX&R, only one of the top 10 life companies, AIA Australia, recorded an increase in individual lump sum new business with the firm seeing a 40 per cent increase from $75 million in March 2018 to $105 million.

Individual life risk covers death, trauma, disability income and business expense products sold through advice channels or direct.

The current largest life company was TAL which has a 19 per cent market share but this would be replaced by AIA once its acquisition of CommInsure was completed, with TAL dropping into second place, notwithstanding its acquisition of Suncorp’s Life business.

Looking at quarterly business, new business fell by 11.4 per cent from $274 million to $239 million.

The fall in overall business was cited as being the result of lower sales through advice channels and the suspension or cessation of sales of direct lump sum products by several major life companies. This included AMP, which is closed to new business, and Asteron which was being acquired by TAL.

DEXX&R said there was “little prospect” of a short-term turnaround in risk product sales as there was a dislocation caused by the sale or restructuring of bank-owned dealer groups who had previously played a significant role in the distribution of risk products.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

1 week 6 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

2 weeks 6 days ago

So we are now underwriting criminal scams?...

6 months 3 weeks ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

2 weeks ago

A professional year supervisor has been banned for five years after advice provided by his provisional relevant provider was deemed to be inappropriate, the first time th...

3 weeks 6 days ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

2 weeks 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
3