DEXX&R’s Life Analysis Report has found that the total new individual risk premiums dropped after being in the green the year prior, falling to $1.27 billion – an 8.5 per cent decrease from $1.4 billion in June 2023.
Total risk in-force premiums also fell by 0.8 per cent in the year to June 2024, coming in at $16.3 billion, down from $16.4 billion in June 2023.
Looking at individual lump sum for death, total and permanent disability (TPD), and trauma, new business was down 10.3 per cent to $857 million from $955 million the year prior.
Despite the widespread losses for the year, the June 2024 quarter saw individual lump sum new premiums increase by 5.7 per cent, hitting $208 million, an $11 million increase on the $197 million seen in the March 2024 quarter. However, the June 2024 sales still fell 12.3 per cent in comparison with the June 2023 quarter that recorded $237 million.
The lump sum attrition rate continued to rise in the year to June 2024, hitting 10.4 per cent, up from 10.0 per cent in the year to June 2023, and 9.1 per cent in the same period the previous year.
The negative trend continued for the year to June 2024 with new disability income business also decreasing 4.5 per cent to $411 million, down from $431 million in the previous year.
Additionally, the June 2024 quarter saw a decrease of 14.8 per cent, reaching just $78 million, down from $91 million in the March 2024 quarter, and sales for this quarter were also lower than the same period last year, dropping 31.2 per cent from $113 million recorded in the June 2023 quarter.
The attrition rate for disability income, which has seen a steady increase since June 2021 with 8.8 per cent, has risen to 11.3 per cent for June 2024, up from 10.6 per cent in the previous year.
“Discontinuances continue to climb from the 8.8 per cent low recorded in June 2021 immediately prior to the release of a new range of disability income products following the APRA intervention and release of conforming products in 2021,” DEXX&R said.
Total in-force group risk premiums saw a decrease of 0.3 per cent from $6.93 billion at June 2023, down to $6.91 billion for June 2024.
“The group risk market is dominated by premium received for the provision of default cover for super funds. While the Protecting Your Super measures have meant that fewer members have default cover, total premium received has continued increase as the result of repricing of existing benefits,” DEXX&R said.
Total in-force risk business (individual and group) written by life companies decreased by 0.8 per cent in the year to June 2024, hitting $16.3 billion, down from $16.5 billion in the previous year.
