Life risk insurance defies gloom to post steady growth
In an environment where superannuation and investment funds under management remains stifled, life risk recorded steady growth during 2011, according to new research by DEXX&R.
According to its 'Life Analysis Report', DEXX&R found sales of individual lump sum risk business increased by 12.3 per cent to $1.15 billion over the 12 months to March 2012.
Leading this sector was AMP/AXA, which increased its sales by 10.6 per cent to $210 million. This was followed by CommInsure ($183m), OnePath ($163m) and TAL ($140m).
The report found that total new disability premiums for the year ending 31 March 2012 also grew, increasing by 15.5 per cent to $425 million.
Three of the top five performing companies in disability risk - OnePath (17.5 per cent increase to $69 million), CommInsure (15.9 per cent increase to $54 million) and TAL (59.6 per cent increase to $51 million) - all recorded an increase in new premiums above the market average, DEXX&R stated.
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Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
