The research company’s new Life Analysis report found that individual lump-sum new business totalled $231 million in March, $23 million less than reported in the December 2020 quarter.
The reported $231 million is the lowest figure since last March that came in at just over $210 million, however DEXX&R noted that new business is “traditionally lowest” in the March quarter.
Lump-sum new business sales were also down by 1.2 per cent to $970 million from last March’s total of $981 million, which marks the third straight yearly decline in lump sum new business sales since March 2018.
“The continued decrease in business reflects the impact of the COVID lockdown from March 2020 and ongoing disruption in the advice distribution channel including the restructuring and transfer of ownership of retail bank owned dealer groups and a fall in the number of life risk advisers,” the report stated.
Life has been a raging success hasn’t it! Top work gov’t.
[quote=Michael Chalmers] People will simply rely on the taxpayer (Government) and charity instead of having insurance. [/quote]
You forgot the Go Fund Me pages that seem to be a popular way of people no longer taking personal responsibility!
Stupid is as stupid does….that’s all I’ll say about what the Government and ASIC have done to this industry the last 6-7 years (more so the last 2-3 years).
Three straight years of decline. That’s not an accident or a blip. That’s indicative on an industry in structural decline. Unlike products which are superseded by better versions (candles, camera film) this decline can be firmly placed at the feet of regulation.
As an adviser who started in insurance back in 1999 I can clearly see the stark differences between the ability to serve clients then – versus now. The simple difference is the cost to serve. Small clients and policies are ignored or discouraged because they are simply not profitable and cannot afford advice fees. The risks in serving these clients are too high with the code of ethics and Best Interest Duty creating an environment of over regulation on what should be a simple product need for the public with a simple advice solution.
We either return to the methods of serving clients from the past or we can kiss personal responsibility and insurance goodbye. People will simply rely on the taxpayer (Government) and charity instead of having insurance.
Both the insurance industry and the advice industry are completely broken. Completely.