Disability continues to drag on life/risk
Disability insurance continues to be a problem area for Australia's major life/risk insurers, according to the latest data released by the Australian Prudential Regulation Authority (APRA).
While the March quarter APRA data revealed the life/risk sector to be in reasonably good shape, it also revealed continuing negative returns with respect to disability-related products.
The APRA analysis said net profit after tax for risk products was $378 million in the March quarter 2016, with individual lump sum risk contributing $361 million, but with individual disability income insurance contributing negative $94 million.
It said group lump sum risk contributed $136 million and group disability income insurance contributed negative $25 million.
Emphasising the contrasting fortunes of products types, the data showed that in the year ending March 2016, net profit after tax was $1.4 billion, with individual lump sum risk contributing $1.1 billion,
Individual disability income insurance contributed negative $18 million, group lump sum risk contributed $386 million and group disability income insurance contributed $21 million.
Recommended for you
Compared to four years ago when the divide between boutique and large licensees were largely equal, adviser movements have seen this trend shift in light of new licensees commencing.
As ongoing market uncertainty sees advisers look beyond traditional equity exposure, Fidante has found adviser interest in small caps and emerging markets for portfolio returns has almost doubled since April.
CoreData has shared the top areas of demand for cryptocurrency advice but finds investors are seeking advisers who actively invest in the asset themselves.
With regulators ‘raising the bar’ on retirement planning, Lonsec Research and Ratings has urged advisers to place greater focus on sequencing and longevity risk as they navigate clients through the shifting landscape.
