Plan for Life risk statistics for December 2019 showed that total risk market inflows were down 4.2 per cent last year, declining from $16.4 billion to $15.7 billion. Inflows into the lump sum market fell 1.4 per cent across the board, with what the research firm described as “mixed company level results”.
Both ClearView and MLC reported positive growth of 5.2 per cent and 2.5 per cent respectively in the lump sum submarket. TAL also recorded 0.5 per cent growth in this category, while all other insurers reported negative growth.
Risk income inflows grew slightly by 0.3 per cent across the industry, with ClearView again leading the market with 15.1 per cent growth, and MLC and Zurich also recording positive growth of 4.8 per cent and 2 per cent respectively. Similarly to the lump sum category, TAL recorded 0.5 per cent growth in income inflows, while the majority of other insurers went backwards.
Group risk premium inflows fell 9.3 per cent as a result of the government’s Protecting Your Super legislation which came into force in July 2019, although a number of insurers recorded positive growth due to incoming super fund mandates. TAL saw 39.5 per cent positive growth in this category while MetLife recorded 6.1 per cent.
All these regulations aimed to help people, yet there is not one benefit to consumers. Less people insured, and they pay more, plus Insurers making losses. Congratulations Politicians & ASIC.
VERY WELL STATED. Edifying to say the least to see the current sad situation summed up so eloquently and succinctly. I think you’ve covered it all. I could only add that these creatures you mention responsible for all this have no comprehension of the idea of ‘Client Best Interest’. If they did then relationships between advisers and clients would not currently be in the throes of being ripped apart. I, for example, have looked after some of my oldest clients for more than 30 years as a specialist risk adviser. I’m, sadly, looking to leave the circus as soon as I reach age 60 (end of this year). It will be gut wrenching to leave my clients but I simply don’t trust the cohort running the evil changes in this industry to keep consistent and any further negative changes. Cant afford it at this late stage. These creatures ([b]FARCE-IA[/b][b][/b], [b]FPA[/b][b][/b], [b]lefties[/b][b][/b] et al) should be ashamed with what they’ve done to our once great industry. I pity the new advisers trying to gain a foothold in it now but I pity the poor clients even more who trusted their ‘old and experienced’ advisers now being forced out. My clients are disgusted about it too. My clients do not want a new adviser, let alone one who is still wet behind the ears with minimal life experience. Too sad for words, all ’round.
Start of the rot…..no turning back now.
Contributing factors: ASIC Report 413, Trowbridge, FSC, LIF, Kelly O’Dwyer, Left Wing Legal Ideologists, Kenneth Hayne & FASEA Code of Ethics Standard 3.
Thank you everyone for destroying the fabric of the Life Insurance business in Australia in the name of “enhanced consumer outcomes”.
It has been a dismal failure and a manipulated and conflicted attack based on ideology.
You have done nothing at all for the consumer, significantly reduced numbers of experienced risk insurance specialists, supported the commodification of Life Insurance and ripped the remuneration base for advisers to shreds and with the resulting significant increases in premium cost and alteration to Income Protection Insurance product, the industry is all but finished.
The problem still remains that Australians need the financial protection as much as ever before and will be unable to form a relationship with experienced practitioners and access high quality risk advice.
What an absolute disgrace this process of planned and executed destruction has been.
No one has won anything, other than those who were hell bent on seeing this through to the end,
Well congratulations to all of you.