New premiums for individual life, TPD and trauma business have fallen for a third consecutive year, according to figures from research house DEXX&R.
The industry wrote $1.3 billion of lump sum new business in the 12 months ending December 2016, down 0.7 per cent on the $1.31 billion recorded in the year to December 2015, the report said.
Lump sum new business has fallen by an average of 1 per cent per annum since reaching a peak of $1.325 billion in the year to December 2013.
Of the top 10 life companies, MLC, TAL, Zurich and AMP recorded an increase in lump sum new business for the year.
“Only two top 10 companies, MLC and Zurich, have recorded an increase in sales in each of the past three years,” DEXX&R said.
“Zurich’s 2016 sales include new business flowing from Zurich’s acquisition of Macquarie Life’s risk business in 2016.
The report also said lump sum new business decreased over the December 2016 quarter following two consecutive quarters of increases, totalling $336 million, a decrease of 10 per cent.
However, new business in the December 2016 quarter was up 8 per cent on the December 2015 quarter sales of $310 million.
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