Life risk sales rallies in June
The life insurance sector remained flat in the 12 months to June 2015 with $1.3 billion in new annual premiums, despite a jump in sales in the June quarter.
Independent researcher, DEXX&R's Life Analysis Report showed individual death, total and permanent disability (TPD), and trauma sales jumped by 15 per cent in the June quarter from the March 2015 quarter, recording $321 million.
All of the top 10 companies saw an increase over the June quarter, with five recording sales higher than the market average.
AIA Australia saw a 25 per cent jump to $15 million, Zurich increased by 20 per cent to $18 million, AMP jumped by 18 per cent to $37 million, while CommInsure saw a 16 per cent increase to $40 million.
Total new disability income premiums dropped by five per cent to $464 million over the year to June 2015.
The disability income business attrition rate dropped from 14.9 per cent at June 2014 to 14 per cent at June 2015.
"As with lump sum business, there is now a clear trend of decreasing discontinuances in the disability income market," the report said.
"Based on previous cycles, we would expect that this downward trend will continue for another two to three years."
Total in-force group risk business rose by 15 per cent to $5.5 billion over the 12 months to June 2015, while all major group risk market players saw double digit percentage increases.
AUTHOR
Malavika Santhebennur
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