Life insurance performance improves
The life insurance industry’s financial performance is improving but individual disability income insurance (IDII) reported a loss of $345.5 million during FY21, according to data.
The Australian Prudential Regulation Authority (APRA) data found net profit after tax (NPAT) for the life insurance industry was $1 billion and said it was a “significant improvement” from the previous year primarily owning to the improved investment market.
However, risk products reported a combined net loss after tax of $18.8 million. While IDII products reported the $345.5 million loss, this was a $900 million improvement in comparison to the previous year’s result.
APRA noted group lump sum and group disability income insurance remained negative but had also improved.
Group lump sum reported a loss of $70.6 million, and group disability income lost $5.9 million.
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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.
