Metlife's acquisition of the Hostplus group insurance mandate has paid dividends in terms of its market share, according to the Dexx&r Life Analysis Report released today.
According to the research, MetLife recorded a $245 million increase in in-force group risk business to $467 million following Hostplus appointing Metlife as its group risk insurer. MLC recorded an increase of 38 per cent to $426 million, up from $309 million, and TAL achieved a 32 per cent increase to reach $1.035 billion, up from $787 million.
Currently AIA is the largest group risk insurer with a 25 per cent market share and TAL the second largest with a 24 per cent share of the total group risk market.
Total in-force group risk business increased 20 per cent to $4.3 billion at December 2013 — up from $3.6 billion on the previous year, states the report, which encompasses all business issued by life companies from their statutory funds for the year ending December 2013.
The Dexx&r research shows group risk premiums paid by some of the largest industry funds have increased up to 40 per cent during the past year as insurers offset higher than expected TPD and salary continuance claims.
These premium increases have resulted in stronger premium inflows into the group risk market and, with further premium increases announced, continued growth in in-force group premiums is expected over the year, the report said.