Life market suffers reduced inflows
Life insurance premium inflows declined in the 12 months to the end of June despite surges in the group superannuation investment and risk markets, according to figures released by Plan For Life.
Life insurance premiums fell by 3.2 per cent over the period from $39.4 billion to $38.1 billion. Declines in premium inflows were experienced in the ordinary non-superannuation market as well as the individual superannuation market. Inflows into retirement income premiums was also lower, Plan For Life says.
Retirement income premiums decreased by 6 per cent, while ordinary non-super premium inflows were down by more than 25 per cent. However, there were two noticeable exceptions to the severe decrease in ordinary premium inflows: American International, which increased premiums by more than 26 per cent and ING, which increased inflows by more than 5 per cent.
Group superannuation premiums inflows bucked the trend to record a growth of 14 per cent with Zurich (81 per cent), Suncorp (69 per cent), Tower (41 per cent) and Westpac (39 per cent) all recording healthy inflows.
But in the individual super market, premium inflows fell off by almost 15 per cent. The big losers were Commonwealth/Colonial (negative 34 per cent), Westpac (negative 33 per cent) and AMP (negative 24 per cent). However, Macquarie, National/MLC and ING all went against the tide to post positive growth in inflows of 43, 17 and 13 per cent respectively.
The inflows in the risk market also bloomed, surging 11 per cent, with Citicorp and Westpac experiencing growth of more than 30 and 26 per cent respectively.
Overall, Suncorp, Challenger and Citicorp all enjoyed general growth of inflows of above 25 per cent, while the inflows of the Commonwealth and Westpac banks fell by more than 20 per cent.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
