Life risk sales fall to five-year low
According to DEXX&R, only one of the top 10 life companies, AIA Australia, recorded an increase in individual lump sum new business with the firm seeing a 40 per cent increase from $75 million in March 2018 to $105 million.
Individual life risk covers death, trauma, disability income and business expense products sold through advice channels or direct.
The current largest life company was TAL which has a 19 per cent market share but this would be replaced by AIA once its acquisition of CommInsure was completed, with TAL dropping into second place, notwithstanding its acquisition of Suncorp’s Life business.
Looking at quarterly business, new business fell by 11.4 per cent from $274 million to $239 million.
The fall in overall business was cited as being the result of lower sales through advice channels and the suspension or cessation of sales of direct lump sum products by several major life companies. This included AMP, which is closed to new business, and Asteron which was being acquired by TAL.
DEXX&R said there was “little prospect” of a short-term turnaround in risk product sales as there was a dislocation caused by the sale or restructuring of bank-owned dealer groups who had previously played a significant role in the distribution of risk products.
AUTHOR
Laura Dew
Recommended for you
Advice licensee Centrepoint Alliance has acquired the financial advice book of superannuation fund Brighter Super and will become the preferred partner to provide advice to its members.
The association has expressed its support for the Opposition’s commitment to making financial advice a “national priority”, alongside its bold target of reaching 30,000 advisers.
Australian investors are increasingly turning to financial advisers as their top source of information, with more than a third using them for investment guidance.
The number of advisers using the HUB24 platform has passed 5,000, with over 100 added in the latest quarter, thanks to a migration from ClearView.
