Norwich Unioncould soon introduce additional life insurance products to its Navigator platform after noting a recent resurgence in market demand for these previously out of favour products.
“A major part of Norwich Union’s business is our life insurance arm and we are committed to continued development of our products against market demands,” says Navigator chief executive officer Allan Griffiths.
“I expect we will see an increasing use of life insurance products on Navigator as advisers recognise their responsibility under the ‘know your client rules’ to grow and protect wealth,” he says.
The resurgence in life insurance, which the Norwich group views as particularly apparent in the income protection and disability benefits sector, is due to greater education and understanding of health issues, it says.
The Australian term life insurance industry, currently worth $1.6 billion in inflows per annum, is expected to be worth $4.3 billion per annum by December 2011 through an estimated average annual growth rate of 11.4 per cent, according toTerm Life Analysis, a survey of Australian Term Life, TPD and Trauma Benefits.
Research group Plan For Life says inflows grew by 11.2 per cent between March 2001 and March 2002.
These figures are despite comments fromStandard & Poor’sRatings Services in March branding the short-term outlook for life insurance in both Australia and New Zealand as ‘weak.’
Standard & Poor’s comments were based on significant declines in life insurance global equity market values as well as what it viewed as consumers not opting to purchase additional investment products.
Navigator recently launched a suite of life insurance products called Wealth Protection available through the funds administration platform.
