AIA largest life company
AIA is now the life insurance market leader thanks to its acquisition of CommInsure as it now has a combined $3.9 million, or 25 per cent, in in-force risk market share, according to DEXX&R.
DEXX&R’s latest life risk sales report over the year to June 2017 found the group risk market was dominated by premium received for the provision of risk benefits provided to superannuation funds.
“After three years’ of strong growth in premium inflows, largely the result of premium repricing, group risk inflows have now plateaued,” the report said.
“Total in-force group risk increased by 1.1 per cent to $6.17 billion over the 12 months to June 2017, up from $6.11 billion at June 2016.”
In the year ending June 2017, TAL recorded a 5.1 per cent increase to group in-force premium to $1.712 billion. This was followed by AIA’s increase of 2.4 per cent to $1.708 billion, Metlife’s increase of 16.7 per cent to $629 million, MLC’s increase of 10.7 per cent to $576 million, and OnePath’s increase of three per cent to $389 million.
“Total in-force business (individual and group) written by direct life companies increased by 2.9 per cent to $15.6 billion over the year to June 2017, up from $15.2 billion at June 2016,” DEXX&R said.
The five largest life companies at 30 June 2017 were TAL (18.2 per cent market share), AIA (14.9 per cent), AMP (12.3 per cent), MLC Life (12.3 per cent), and CommInsure (10.1 per cent).
The report also found that while the industry wrote $1.31 billion of lump sum new business, up 1.4 per cent on the 1.29 billion recorded a year before, this was well below levels prevailing three years ago.
The report found only three top ten life companies recorded an increase in lump sum new business for the year ending June 2017 – MLC with an 0.8 per cent increase to $199 million, TAL with a 5.1 per cent increase to $167 million, and AIA with a 0.9 per cent increase to $67 million.
DEXX&R said the June quarter individual lumpsum new business decreased for the third consecutive quarter, with new business down $16 million to $291 million, on the $307 million in new business during the March quarter.
Disability income new business increased by 0.9 per cent to $503 million over the year to June 2017, up from $499 million the year before.
DEXX&R found ClearView recorded an increase in disability income new business of 24.9 per cent to $19 million, Westpac an increase of 5.3 per cent to $68 million, TAL an increase of 9.6 per cent to $82 million and AIA Australia recorded an increase of 3.1 per cent to $29 million.
Money Management will discuss these topics at the Annual Risk Policy and Awards breakfast on 19 October. Tickets are still available.
Recommended for you
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.
