Life insurance inflows continue to surge
Inflows into the life insurance risk market were up 10 per cent overall in the last year, growing from $8.9 billion in the year ended June 2010 to $9.8 billion in the year ended June 2011, according to Plan For Life data.
Newly rebranded TAL reported the strongest inflows, up 19.2 per cent. The next best reported inflows were Zurich (15.6 per cent), AIA Australia (14.1 per cent), BT/Westpac (13.4 per cent), and OnePath Australia (10.3 per cent).
Overall premium sales in the sector rose by 6.1 per cent, with AMP recording the biggest increase at 27.4 per cent. The next highest inflow went to Suncorp (16.7 per cent), OnePath (8.4 per cent) and BT/Westpac (7.2 per cent).
Within the overall market, the individual risk income market performed the strongest, with inflows up 12.3 per cent. BT/Westpac was the strongest performer (25.1 per cent), followed by AIA (18.8 per cent) and OnePath (17.3 per cent).
Inflows into the group risk market were up 10.2 per cent year on year, with TAL out in front with an increase of 30.1 per cent. Macquarie Life reported an inflow increase of 14.4 per cent, and AIA was up 12.2 per cent - but MetLife Insurance reported a large drop in group risk inflows of -20.9 per cent.
Plan For Life said in its report that the individual risk lump sum market had been significantly affected by the "unabated growth in the housing market" over the last few years. This sector, which encompasses term life, total and permanent disability and trauma, increased its inflows by 9.1 per cent over the last year. AIA was the best performer, with inflows up 20.1 per cent, followed by Zurich (12.1 per cent), Suncorp (11.1 per cent), BT/Westpac (10.9 per cent), CommInsure (10.5 per cent), and TAL (10.3 per cent).
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
