The prudential regulator’s data revealed that total revenue for the life insurance industry had shrunk by 57.4 per cent, from $6.2 billion in the 4Q20 to $2.6 billion in the 1Q21.
Net policy revenue remained relatively flat over the quarter, declining 3.3 per cent from $3.5 billion in the three months to December 2020, to $3.4 billion in the three months to March 2021.
However APRA’s annual data presented a stronger picture for the industry, with total revenue increasing by 14 per cent year-on-year to $22.2 billion in the 12 months to March 2021.
Net profit after tax across the industry increased to $1 billion from a $1.8 billion loss the previous year.
APRA called the results “a significant improvement from the previous year”, primarily owing to investment market performance as initial COVID volatility rebounded.
“The life insurance industry is gradually recovering from the economic impacts associated with the pandemic,” the regulator noted.
As a number of APRA’s income protection restrictions came into effect, the industry recorded a significant improvement in profits from individual disability income products, but still reported a loss of $330 million in the 12 months to March 2021 – up from a $1.4 billion loss in the previous year.
However profit results in individual lump-sum products declined significantly, from $387 million in the 12 months to March 2020 to $316 million in the year to March 2021.
Risk products overall reported a combined net loss of $165.7 million for the 12 months to March 2021, APRA said.
Feeling sad as I have to leave all my clients behind after 37 years. At age 80 no way did I need or want to do an exam. Stupid regulators, why could risk advisers over say 65 with a clean record not be allowed to continue until wished to retire. Who will look after the traditional business, whole of Life, endowment or even understand it. Business is now complicated with regulations etc etc and all at reduced income.
Is that the regulators trying to claim credit? The changes in new IP policies isn’t going to be that quick in swinging profitability, and insurance is based on bigger the pool to be effective so wonder what effect a lessening pool will be?
Well its any wonder revenues have dropped when the regulator has effectively given the green light to insurers to jack premiums so high on policy holders who have not contributed to the claims problem but because they have been long term policy holders are now in a position of not being able to afford the premiums – good job APRA of protecting the policyholders – fools
It’s not APRA rather the Government pushing through dysfunctional PYS/PMIF for political purposes. Kelly Odwyer didn’t listen or engage much like they’ve still doing with YSYF
Net profit after tax across the industry increased to $1 billion from a $1.8 billion loss the previous year.
So Sad
dont care, premiums are increasing way too fast and my payments for writing risk halved…. not to mention all of my fees increasing everywhere I look. I wont be surprised when they all collapse…. did it to themselves. Advisers have never done anything but support insurers….. didnt hear you supporting us when the shit hit the fan.
its hard to feel sorry for them tbh