While life insurance sales have remained flat, in-force group risk business rose by 13 per cent over the year ending March 2016, research from DEXX&R has found.
The firm's Life Analysis Report shows total lump sum sales for the full year reached $1.3 billion in new annual premiums. Three of the top five life companies recorded a rise in lump sum new business, with TAL recording a 3.9 per cent increase and OnePath a 2.4 per cent increase.
"The December and March quarters are traditionally the slowest quarters," the report said.
"With lower sales recorded for the March 2016 [quarter] than the March 2015, there are signs that calendar 2016 may prove to be a tough year for sales in the individual lump sum market."
Total in-force group risk business increased to $6.1 billion over the 12 months to March 2016, up from $5.4 billion at March 2015.
The top five companies in in-force group premiums all recorded increases, with TAL and AIA both recording the largest increases at around 27 per cent.
The report noted there were $489 million in new disability income premiums over the year to March 2016, an increase of 5 per cent from the $467 million recorded in the 12 months to March 2015.
Seven of the top 10 companies recorded an increase in disability new business, with AIA and OnePath recording the largest increases, at 19 and 16 per cent respectively.
The report also noted that the attrition rate for disability income business decreased from 14.4 per cent at March 2015 to 13.9 per cent at March 2016.
"As with lump sum business there is now a clear trend of lower levels of discontinuances in the disability income market," the report said.
"The continued fall in lump sum and disability discontinuance rates during a period of flat or falling sales indicates that the industry is improving retention with a commensurate improvement in profitability."
Stimulate new ideas. Stimulate new thinking. Top up your CPD points and hear from industry experts with ifa’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD hours. Explore the Knowledge Centre now.
The government has introduced legislation around the adviser disciplinary body into parliament. ...
Marc Bineham, former AFA national president, has launched new book, The Money Sandwich, aimed at helping over-50s better manage their money and retire...
Mayfair founder James Mawhinney has said a new venture he’s offering to investors is within the bounds of the law despite being hit with a 20-year ...