Investments in life insurance grew by 11 per cent over the year to September 2004 according to the latest statistics from Melbourne based research group Plan For Life.
Over this period a total of $4.3 billion was poured into life insurance, compared to $3.9 billion during the same period in 2003.
The biggest winners in terms of premium inflows were AIG Life, PrefSure and ING, who all recorded double digit growth rates.
Although Prefsure chalked up a 33.2 per cent increase in premium and ING added 12.2 per cent, AIG Life emerged as the biggest mover reporting a whopping 87.1 per cent growth in premium inflows for the twelve months period.
AIG Life also outperformed the pack in terms of sales, registering a 195.3 per cent increase over the period, with Tower coming in a distant second, filing a 29.3 per cent increase.
At the other end of the spectrum, Asteron and BT/Westpac both saw sales decline – by 27.4 per cent and 10.5 per cent respectively.
Meanwhile, in the group risk market — the insurance component of super funds, master funds, wrap accounts also credit risk insurance, AIG emerged as the strongest performer again, with 132.4 per cent growth over the period.
Inflows for PrefSure were up by 57.6 per cent and by 21.0 per cent at ING.
Plan for Life senior consultant Stephen Dingjan said trend in the life insurance market were being driven by “the stand-alone corporate superannuation market as well as master funds and other investment platforms extending their services by providing risk insurance services”.
AIG Life national marketing manager Ken Morgan agreed, and said to this end, AIG had a “transition team” in place for corporate clients looking to switch insurers.
In the area of term life, total and permanent disablement and trauma insurance inflows grew by 9.1 per cent with all companies recording positive results.
Zurich was the best performer in this category, with 18.7 per cent growth, with Tower and AMP also performing well.
Tower reported a 13.4 per cent increase in life, total and permanent disablement and trauma insurance inflows and for AMP a 12.2 per cent rise was recorded.
In the individual risk income market, income protection or sickness and accident and business expenses insurance premium inflows grew by 9.3 per cent.
The best performers were PrefSure with 27.6 per cent growth, National Australia/MLC and AMP with 12.4 per cent and 10.1 per cent respectively.
