Risk market surges with life
Inflows to the life insurance risk market rose 10.9 per cent to $4.2 billion in the 12 months to June 2004, according to a new report from research group Plan For Life.
The market, comprising both individual lump sum and individual income insurances, plus group risk insurance, also recorded an 8.2 per cent growth in new premium sales.
PrefSure achieved the best growth results overall, posting a 46.1 per cent growth in inflows and an 84.2 per cent growth in new premium sales.
Other top performers in the inflows category were ING (16.3 per cent), AMP (12.7 per cent) and BT / Westpac (11.3 per cent.)
The next highest new premium sales growth after Prefsure was recorded by ING (44.6 per cent), Tower (28.5 per cent) and AMP (21.5 per cent)
Inflows into the individual insurance lump sum market grew by 9.5 per cent, a result which the report says was significantly impacted by mortgage lenders pushing risk insurance during the housing market boom.
Best performers in this sub-market, which includes term life, total and permanent disablement, and trauma insurance, were Zurich (18.4 per cent), National Australia/MLC (12.1 per cent) and BT/Westpac (11.7 per cent).
Premium sales in this sector also grew by 3.8 per cent, with Tower (25.8 per cent), AMP (19.1 per cent) and Commonwealth/Colonial (8.5 per cent) posting the best growth. National Australia/MLC, by contrast, saw its business decline by 10.7 per cent during the period.
The individual risk income market - including income protection, sickness and accident and business expenses insurance - recorded inflows growth of 7.1 per cent.
Best performers were PrefSure, which had inflow growth of 22.2 per cent, followed by National Australia/MLC (14.1 per cent), ING (12.0 per cent) and AMP (10.9 per cent). Tower, on the other hand, recorded a fall of 11.4 per cent.
Premium sales were up by 12.1 per cent overall, with PrefSure (69.8 per cent), Tower (32.1 per cent) and AMP (27.7 per cent) recording the best growth.
The group risk market recorded inflows growth of 16 9 per cent and new premium sales growth of 11.9 per cent for the year.
Prefsure posted a 102 per cent growth in the market, which is driven by the stand-alone corporate superannuation market as well as by investment platforms extending their services by providing risk insurance services.
Other strong inflow results came from AIG Life (up 46.8 per cent), ING (27.6 per cent), Tower (23.5 per cent) and AMP (21.6 per cent).
Premium sales in this category were up 11.9 per cent, with PrefSure, ING and AIG Life all recorded growth levels in excess of 100 per cent.
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