In the year to September 2023, risk premium inflows rose to $18.2 billion from $17.9 billion a year earlier, while overall annual sales continued to decline, according to a report by Plan For Life.
Over the last two years, risk premium inflows have increased by almost $1 billion, having grown from just under $17.3 billion in September 2021.
TAL strengthened its lead in market share, now holding 33.8 per cent of all risk premiums for the year, up from a 33.1 per cent market share a year ago. It’s yearly risk premium inflows also grew by 3.2 per cent to $6.13 billion.
Third-ranked Zurich also experienced growth, with its risk inflows increasing 5.8 per cent to $2.7 billion for the year, while second place AIA declined 4.8 per cent to $3.1 billion. MLC ended almost flat, dipping just 0.1 per cent to $1.88 billion.
Meanwhile smaller players ClearView (9.6 per cent) and NobleOak (24.6 per cent) recorded a couple of the biggest percentage jumps.
The group insurance category experienced a 1.3 per cent dip, to sit at a total of $6.83 billion, reversing some of the 5.3 per cent growth the category experienced over the prior year.
Meanwhile, individual lump sum products for risk coverage increased by 2.2 per cent to reach $7.95 billion, and individual income protection for risk coverage saw a year-on-year increase of 3.7 per cent, reaching a total of $3.38 billion.
Overall annual sales in the risk market decreased by 2.1 per cent, which Plan For Life largely attributed to group risk sales dropping by close to a quarter.
Among leading risk insurers, TAL (9.0 per cent) and Zurich (12.2 per cent) saw their sales rise, however, Resolution (-29.2 per cent), AIA (-21.2 per cent), and MetLife (-9.7 per cent) all experienced significant falls.
This is what happens when you pay peanuts.
So how much of that $18.2m is down to systemic “gouging” of existing business versus a genuine increase in NEW BUSINESS from NEW CLIENTS