Overall risk market sales were down 5.9 per cent, due in particular to a significant 16.7 per cent fall in new group risk sales.
“Risk market leader TAL (149.2 per cent) reported a very large jump in sales, again the increase was mainly concentrated in group business,” a statement from Plan for Life said.
Only Zurich, off a lower base, and OnePath recorded higher risk sales over the year, with 6.3 and 6.2 per cent increases respectively.
“CommInsure (-42.7 per cent), Suncorp (-24.7 per cent), AMP (-22.9 per cent) and NAB/MLC (-16.5 per cent) by contrast recorded significant double digit percentage falls,” the statement said.
On the risk premium inflows front, among the medium-to-larger-sized companies, TAL recorded the highest growth at 18.2 per cent.
This was followed by AIA (16.4 per cent), BT/Westpac (13 per cent), OnePath Australia (9.6 per cent) and Zurich (9.5 per cent), the statement said.
With only three companies recording an increase in ‘RISK’ sales, some questions spring to mind, and for me, alarm bells are ringing:
Q. Have all but three companies priced themselves out of the market?
Q. Are advisers placing the majority of their ‘risk’ business with only three providers?
Q. Do three providers only, have the best and most suitable products?
Q. Have some ‘risk product’ providers become less active in the market?
– If so, where does that leave their existing clients?
– Where does that leave the adviser who supports them with business?
Q. With such huge percentage reductions in premiums from some providers:
– Has their business gone to TAL with 149.2% increase?
– Is telemarketing really having such a HUGE impact in the marketplace?
– If not, where has it gone?
– Are existing clients NOT being offered ‘RISK’, & not even being reviewed?
– Has the adviser lost sight of the need for ‘RISK’ protection in a client’s portfolio?
Q. Does the ‘RISK’ provider still have a DUTY OF CARE to provide?
– A competitive ‘RISK’ product for adviser and client?
– Product support for advisers?
Q. Does the adviser still have a DUTY OF CARE to provide the best advice to his or her client – including ‘RISK’?
Under insurance across all areas has always been a problem in this country, and if only three companies can increase their ‘RISK’ business, the figures tell me that under insurance is getting worse, not better.
Three weeks ago I gave a Focus Session presentation at the 2016 MDRT Vancouver Canada Annual Meeting, on this very subject…’RISK’. And to represent Australia as a speaker at such a magnificent event made me proud to be an Australian.
To read this article and to see such worrying results in this critical area of ‘RISK’ is simply devastating.
What is going to happen to YOUR client?
John Maher
Keynote Speaker on ‘RISK’
We made the point to the stupid people over at the FSC that risk sales would fall and cashflow would crash. This is now happening and will accelerate when commissions get cut.
The FSC will then be scrambling for a solution and there will not be one.
Well done FSC having conned the Government and the regulator and you will see your members now record losses. Very well though out with lots of brain power applied.