Statistics from Plan for Life released this week revealed an increase in life insurance risk inflows from $16.7 billion to $17.6 billion during 2021.
Risk inflows gained 5.5 per cent in 2021, with mid-sized insurers MetLife and QInsure reporting double digit inflow growth rates of 11.9 per cent and 10.1 per cent, respectively.
Much smaller player NobleOak recorded gains of 60.4 per cent to $223.7 million.
While their growth was single digit, market leaders TAL and AIA both saw above average inflow increases of 7.5 per cent and 7.3 per cent, respectively.
The remaining funds finished either modestly higher or with little change. Among them, BT/Westpac edged up 0.7 per cent, while Resolution contracted 0.6 per cent.
Total new premium sales rose just 2.2 per cent year on year, with BT/Westpac (24.9 per cent), TAL (24.3 per cent) and Zurich (12.6 per cent) reporting double digit percentage increases in their risk sales. These, however, were offset by falls recorded by AIA (-7.5 per cent), Resolution (-7.9 per cent) and ClearView (-8.7 per cent).
Once again, NobleOak outperformed reporting a six-fold jump in its annual risk sales, but off a very low base, according to Plan for Life. As a result, NobleOak’s market share grew to 1.3 per cent, from 0.8 per cent in December 2020 and just 0.5 per cent in 2019.
This will be absolutely decimated in the next 2-3 years.
If Life Insurance companies think it’s tough now, wait until 2023/4 when the vast majority of experienced risk professionals have left.
They have no-one to blame but themselves as they were complicit with the FSC, ASIC, Trowbridge & Kelly O’Dwyer in overseeing the biggest unmitigated, manipulated and discriminatory attack on quality advisers who were supportive & loyal channels of new business inflows.
Good luck.
Anything to do with the almost 50% increases in some policy premiums? All I seem to do nowadays is reduce cover for people who are no longer able to afford these massive increases. Lucky consumers are looked after post LIF, farcsea etc
Hahaha! Yes, that’s right emkay. The indefensible hikes in IP premiums and trauma policies would cover that so-called “increase” in inflows fully I’d say. It certainly isn’t a pickup in the rate of risk advisers writing new business, that’s for sure! These life company chiefs had no idea what they were doing when they shafted life advisers with lower commissions and longer clawbacks. I’d say they’re starting to see the fruits of their duplicitous arrogance now however. It will become much worse as we approach 2025. By then I’d estimate at least 90% of the risk advisers will be gone – they simply don’t make any money now, just meeting costs at best most of them. I hope the statutory finds are in good shape – the life companies are going to need them robust, like never before, for what’s coming!