The life insurance industry has made a significant improvement over the year to March, 2021, as the industry made a net profit after tax of $1 billion and a return on net assets of 4%, according to Australian Prudential Regulation Authority (APRA) statistics.
APRA’s latest quarterly life insurance statistics found the industry was gradually recovering from the economic impacts associated with the COVID-19 pandemic, and its $1 billion profit was a significant improvement from the previous year.
However, for the 12 months to March, 2021, risk products reported a combined net loss after tax of $165.7 million.
Individual disability income insurance (IDII) continued to post losses, with a loss of $331.2 million during the year. But this was a $1.1 billion improvement from the previous year’s result.
Group lump sum posted a loss of $91.8 million and group disability income insurance (group DII) posts a loss of $58.3 million. Individual lump sum was the only product to post a profit of $316.5 million.
“For the March quarter, the industry made a modest profit of $159.1 million, which was primarily driven by the favourable performance of the individual and group DII business,” APRA said.
“These were partially offset by the fall in investment revenue as the equity/bond market did not perform as strongly as during the December quarter.”
Comments
Hard to sell a turd product - when premiums keep getting jacked up. Many clients want to cancel and new clients don't want it due to the stories of ridiculous price increases. Plus we have a solid welfare system to fall back on.
On the up, huh! Sounds like a piece of ScoMo marketing spin. Come on MM, look behind the covers.
One former bank-owned insurer is taking 8-10 weeks to process increase quotations- and ASIC, who require a full comparison between existing (after increase) and the replacement product, don't care.
They also have washed their hands on 30% increases to premiums on " legacy" products. Another life insurer known better for investments, has systems unlike most other life insurers - took three(3) months to put a policy extension in place, and there was no underwriting!
Then of course there is the APRA inspired bullshit on IP. Is it on for 1 October 21, or 2022
Life insurers are sacking good experienced employees, and replacing them with younger, and less expensive, " go-getters" in an industry that is based on relationships.
The life insurance industry is self-destructing before our very eyes - its a slow train wreck, yet no-one, government or insurance CEOs, is listening.
Stop this self-perpetuating nightmare: restore commissions to 80/20, with a one year clawback, and watch experienced advisers start writing fresh new lives. IF THEY PASS THE FASEA EXAM
The only reason for this meagre profit is the massive increases in premiums, every single client has seen increases circa 20 to 50% of the premiums over the past few years, its not rocket science. Again our underwritten individual clients are the ones holding the fort. Once again the non underwritten group insurance pulls the guts out of the profits, the easy low hanging fruit for the insurance companies is actually just all poison apples. Separate members into smoker versus non smoker pools for a start you nuff nuffs!
Talk about running out of constuctive jounalism. Yes there should be some sort of profit
With 30-50% premium increase commission structures down 50%. And everyone one in every claims dept. appear to be on a "witch hunt" for any little issue that might help a claim be denied.
Why do I bother to comment when you never publish them
They are not offensive but simply outline the industries plight !
Let me know ?
Statistics can be made to say anything. The blinding obvious is they have been used to tell this story here exactly backwards. The life industry is getting worse by the day as premiums rise disproportionately to anything real, clients drop off the books and dealing with life companies as an adviser is dealing with people that see themselves in the commodity/product industry rather than the relationship business. The industry, the life companies and advisers are not long for this world, the latter being forced out by unnecessary draconian exams and degrees they simply don't need as lifewriter advisers. Those politicians and industry entities responsible for this farce and FARCE-IA should be removed and ashamed of themselves. Come 2026 they will have ruined a thriving consumer protection industry.
Was this article written by The Ministry of Truth or just a lazy journalist?
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