Risk insurance new business levels continue to climb, according to the latest market data released by DEXX&R.
In the research firm’s quarterly Life Analysis Market Share Report to December 31 2008, DEXX&R reports headline new annual premium growth of 14.2% for lump sum insurance business and 14.1% growth for new disability income insurance business.
Commenting on this surge in risk insurance new business, DEXX&R Managing Director, Mark Kachor, told riskinfo he agrees that a proportion of the increase is being written by advisers who are seeking to supplement a reduced income stream in the area of investment advice.
However, Mr Kachor believes this trend will not necessarily continue when equity markets return to a growth cycle because it is simply easier for some advisers to write investment business rather than concentrate on risk insurance, where underwriting and other implementation issues may be experienced.
“An adviser doesn’t need to ask a client how much they weigh when they provide investment advice,” said Mr Kachor, in a comment that neatly sums up the what can often be an issue for many advisers when it comes to addressing a client’s life insurance needs.
Market share details as at 31 December 2008 include:
Lump Sum Business (Term Life, TPD, Trauma)
Top three (new annual premium):
- CommInsure: $143.0 million
- MLC: $109.2 million
- ING Life: $107.6 million
Disability Income Business
Top three (new annual premium):
- MLC: $57.0 million
- CommInsure: $39.0 million
- ING Life: $34.5 million
Group Risk Business
Top three (new annual premium):
- CommInsure: 120.3 million
- AIG Life: 97.9 million
- ING Life: $70.4 million
These latest numbers support sales data from individual insurers as well as from other research such as Plan For Life’s September 2008 data, previously reported in riskinfo. The question is, how long will this trend continue?
