Retail insurance channel sees growth

22-Dec-2017

By Sarah Kendell

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The retail risk insurance sector went from strength to strength in the 12 months to September 2017, rebounding from three years of declining sales to record $1.4 billion of lump sum new business, according to new data from DEXX&R.

The retail insurance channel increased last year’s new business figure of $1.28 billion by 9.6 per cent, with seven out of the top 10 life insurers recording positive growth in the year to September, the research firm revealed.

Business growth in risk insurance also eclipsed the 2014 and 2015 figures of $1.39 billion and $1.31 billion respectively, the data showed.

Additionally, new business in the September 2017 quarter was $432 million, up 21 per cent on the previous quarter’s sales figure of $342 million.

Individual policy discontinuances also continued to fall, down from a peak of 15.6 per cent in 2013 to 13.1 per cent in 2017, which DEXX&R said was likely to have a positive impact on life company profitability.

Further, the data revealed that disability income new business across the insurance industry had increased by 1.9 per cent to $512 million in the year to September, up from $502 million in the year to 2016.

Six of the top 10 companies in the disability insurance space recorded positive growth over the period, with TAL reporting the highest growth rate of 8.8 per cent to $83 million.

AMP also saw its disability income new business increase by 14.4 per cent year on year to $61 million, while CommInsure grew 3.5 per cent to $28 million.

Meanwhile, the group risk market also saw an increase of 2.6 per cent to $6.21 billion over the year to September, with four of the top five companies in the space seeing positive growth – AIA Australia, TAL, Metlife and MLC.

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