Zurich to withdraw from group life market
Zurich says it has been priced out of the Australian group life insurance space and plans to withdraw from the market.
Citing the adverse claims experience and its flow-on impact on premiums, the company said it would not be accepting new mandates but would continue to provide cover for clients as it phases out.
It is understood two staff members will lose their jobs.
The decision to withdraw follows a lengthy review of Zurich's Australian group life business, Colin Morgan, CEO of Zurich's Australian Life and Investments business, said.
"Ultimately we felt we couldn't participate in the local group life market in a way that was sustainable, either for Zurich or our customers," he said.
"We entered the local group life market in 2008, believing there was an opportunity for a specialist niche player to serve the smaller end of the market.
"However the landscape of the Australian group life market has now significantly changed and it is increasingly difficult for smaller players to offer a competitive proposition."
Morgan said reinsurance rates and reserving requirements also impacted the decision.
He stressed that Zurich's retail life business and other market offerings will not be affected.
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