In the year to December 2023, risk premium inflows have remained relatively flat, reaching slightly below $18.1 billion, according to a report by Plan For Life.
Year-on-year new premium sales for this period were up 8.8 per cent.
TAL continues its lead in market share, holding steady at 33.5 per cent of all risk premiums for the year, totalling $6.05 billion. It has, however, slipped slightly from last year, reporting -0.10 per cent annual growth, which Plan For Life said reflected the results of the overall market.
Despite holding the second largest share of the market, with 17.2 per cent totalling $3.1 billion, AIA also experienced a drawback, seeing -4.5 per cent annual growth in 2023.
Other larger players also saw declines for this period with MLC (-1.6 per cent) and Resolution (-5.5 per cent) both reporting in the negative for annual growth.
Third place Zurich was the only insurer in the top five to experience growth over this period, with its risk inflows increasing 4 per cent to $2.71 billion, while MetLife saw 5.4 per cent growth falling just shy of $960 million.
Meanwhile, smaller players ClearView (10.5 per cent) and NobleOak (24.2 per cent) recorded the greatest percentage jumps for annual growth, both hitting double digits.
The group insurance category experienced a 2.7 per cent drop over this period, reaching $6.78 billion.
Meanwhile, individual lump sum products for risk coverage increased 1.1 per cent to reach $7.92 billion, and individual income protection for risk coverage saw a year-on-year increase of 2.2 per cent, reaching a total of $3.37 billion.
Zurich (38.3 per cent), NobleOak (37.5 per cent), ClearView (20 per cent), TAL (18.1 per cent), and AIA (9.4 per cent) all reported considerable increases in risk sales for the year to December 2023.
However, this was partially offset by falls reported by MetLife (-38.1 per cent), which Plan For Life explained is due to its group risk sales dropping back down after a sharp jump in 2022, and Resolution (-30.1 per cent).
This article is a clear example of industry spin, propaganda, and disinformation. Despite the headline suggesting that the life insurance sector is stable, the reality is quite the opposite. The sector is sinking, and the only reason premiums are “stable” is that insurers are extracting more from a smaller number of policyholders who are finding it increasingly difficult to hold onto their policies.
The industry’s decline is a direct result of clever executives who managed to get the government to halve their distribution costs. These executives likely received bonuses for their short-term gains and have since moved on, leaving behind a sinking ship that cannot write enough new business to compensate for those abandoning their coverage.
TAL, despite leading the market, has seen negative growth, as has AIA. Even with some smaller players like ClearView and NobleOak showing growth, it’s not enough to offset the overall decline. Group insurance is down, and individual risk products show only marginal increases.
And what does CALI have to say about the importance of commission increases to save the sector? Nothing. This silence speaks volumes about the industry’s current state and the challenges it faces. Short-termism, cowardice, and virtue signaling can kill any industry, and the life insurance sector is a prime example of this destructive combination.
This is ridiculous.
This is simply because current premiums are going through the roof and people are cancelling policies at a rapid rate.
Why not make a comparison of new business inflows now versus 2, 5 & 10 years ago.
This will tell the story of the decimation of a once buoyant, profitable and sustainable business model, assisting Australians were adequately and financially protected by experienced and knowledgeable Risk Advisers.
This has been Govt sanctioned dismantling of an essential and important service to millions of Australians.
Not sure why we bother with publishing these figures. Everyone in this industry knows why premiums are going up if at all and that’s because our friends the life insurers are busily gouging by increasing existing products particularly agreed value IP by anything up to 80%.
This industry is going to hell in a hand basket and it’s led by those genius CEOs who are only interested in shareholder value and their attached CEO bonus, based on increasing overall Premium income.
I’d love to see a report on what the P4L stats really look like when broken down as these really don’t mean anything on face value – is it really a growth or holding steady story??? How about breaking down Group and Retail? How about breaking down new business growth versus in-force growth (off the back of premium and age increases)? How about showing how much IP business is lapsing on old business v new style business (ie indemnity et al). Presenting these numbers might make for a bit more compelling read. Just a suggestion.