Risk market still growing
The December quarter of 2012 has seen the life insurance sector grow to $11.5 billion, according to new figures released by research firm Plan for Life.
This represents a $200 million increase from the September quarter and an 11.7 jump year on year, with consistent growth being seen in all three insurance sectors — individual risk lump sum, individual risk income and group insurance.
In terms of retail market share, AMP is still in the lead with almost $1.4 billion in premium inflows, while NAB ($1.2 billion) and CommInsure ($1 billion) aren't too far behind. However, OnePath and TAL recorded better percentage increases.
The Plan For Life report also highlighted group insurance figures, with the sector growing by $109 million over the December quarter. AIA retained its top spot, holding almost a quarter of market share with $947 million in premium inflows.
TAL and CommInsure are steady in the second and third spot respectively, with both companies recording more than 20 per cent growth year on year.
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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.
