Winners and losers in life insurance
The risk insurance market continues to flourish in the current economic environment, while retirement income has recorded another 20 per cent fall in premium inflows over the past 12 months, according to newly released Plan For Life data.
New figures have revealed that the retirement income market dipped from $7 billion to $5.6 billion in annual inflows to the end of March 2010, with Challenger being the only company to report any substantial growth in the market.
Suncorp, along with most of the other players in the market, recorded double-digit percentage falls year-on-year.
The figures came after the Government acknowledged the Cooper Review’s lack of focus on the market and announced that it would place retirement income products back on the policy table.
Overall, life insurance inflows have had a modest decline of 2.4 per cent, but the risk market continues to enjoy solid upward growth, experiencing a further 10 per cent bump in annual inflows.
The best risk business growth rates year-on-year were achieved by TOWER, National Australia Bank/MLC, AMP, ING, BT/Westpac and AIA.
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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.
