Life insurers are continuing to do it tough on income protection products according to a report to be released at presentations by Gerling Global next week.
The report, Market Evaluation : Individual Risk Products found that 67 per cent of survey respondents believe that their company is not achieving its profit targets for income protection, while 41 per cent of respondents also believe that profits will either stay the same or get worse over the next five years.
General Manager of Gerling’s
Life insurers are continuing to do it tough on income protection products according to a report to be released at presentations by Gerling Global next week.
The report, Market Evaluation : Individual Risk Products found that 67 per cent of survey respondents believe that their company is not achieving its profit targets for income protection, while 41 per cent of respondents also believe that profits will either stay the same or get worse over the next five years.
General Manager of Gerling’s Australian life reinsurance business, Brian Sussman, says that even though the research suggests the prof-itability problems associated with income protection products may not have bottomed out there are various opportunities identified in the report to ensure profitability is improved.
Also of concern for life insurers are the research figures emerging on trauma insurance, a product in its infancy. While the report found that the overwhelming majority of respondents believe that trauma product providers are hitting profit targets almost two thirds be-lieve profitability will either stagnate or deteriorate over the next five years.
Sussman says the research suggests respondents believe the “reason-able profits” currently obtained on trauma products may also eventu-ally be under assault.
“Maybe it won’t have the same volatility (as income protection prod-ucts), but there is a growing realisation that the industry must do something to stop that happening.”
Gerling believe that opportunities have also been identified in the report for improvement in trauma products. Gerling’s report will be released at industry briefings on May 18 in Sydney and May 19 in Mel-bourne.
