According to Plan For Life, overall sales in the risk market dropped by 23.7 per cent for the year.
Among the insurers that reported “very substantial” decreases in risk sales were MetLife and TAL, both reporting drops of 71 per cent and 60 per cent respectively.
Plan For Life also found that AIA experienced a decrease of 37.3 per cent and AMP saw sales drop 22.7 per cent.
The research house noted, however, that the falls in sales were “primarily concentrated” in the group insurance market, not the retail market.
Plan For Life also found that over the year, the risk sector experienced an increase in premium inflows of 7.1 per cent to $15.2 billion.
Among the insurers that experienced the greatest inflows were BT (13.5 per cent), MetLife (12.1 per cent), OnePath (11.7 per cent) and AIA (9 per cent).
Well they asked for advisers to start preparing for the Life Insurance Framework…
Many adviser’s preparation is to simply write less risk, mine included, as I am now charging fees for risk advice which not all clients will pay.
If the insurers think this is bad then how will they react to seeing so much of their new retail risk business stop flowing in after 1/7/16…?
Best their execs enjoy their bonuses now because this time next year may well be lean for so many.