Banks dominate rising risk insurance market
Bank backed providers Colonial and MLC continue to lead the new risk business race, but Prefsure - the subsidiary of South African insurance giant Capital Alliance Holdings (CAH), has proven to be an emerging force over the past 12 months according to research group Dexx&r.
Of the top 10 best performers, Prefsure reported a sales increase of 130 per cent to $17.8 million, sneaking into 10th position on the list.
Overall, the Dexx&r Life Analysis Leading Indicator Report of the life risk industry found total new annual premiums, which include all ordinary and superannuation risk annual premium products increased by 7.5 per cent to $857 million, over the 12 months to June 30.
Total new annual premiums, which includes term life premiums, enjoyed a 6.27 per cent to $411.1 million over the period.
In the term life space both Colonial and Westpac continued to benefit from continued growth in sales of term products through direct distribution to customers of the parent retail bank.
In the area of disability, new annual premiums added 12.45 per cent to rest at $176.3 million, with MLC continuing to lead the pack despite suffering a drop off in business.
Other good performers in disability sales included Tower and AMP, posting increases of 30 and 36 per cent respectively.
Group risk new annual premiums increased by 6.23 per cent to $269.6 million with Colonial holding onto to the biggest share of the market at 18.8 per cent, and reported new business of $51 million over the 12 months.
The results for Prefsure round off a busy 12 months which included the acquisition of the group (which was formerly Lumley Life) by CAH for $83.75 million back in October 2003.
Since the end of the financial year Prefsure has since revealed a change of tact, dropping 1,500 advisers from its books and instead focusing on a core group of 45 advisers to lead the charge against the bank aligned insurers.
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