December 17, 2013
The 12 months to September 2013 continued to yield positive growth in risk sales and inflows, according to the latest statistics from DEXX&R and Plan For Life.
In its September 2013 Life Analysis Report, DEXX&R reported a growth in total risk in-force business of 10.5%, taking the total to $11.7 billion. The group risk segment contributed strongly to this result, with in-force increasing by 15% for the period. Individual in-force risk business increased by 8% to $7.7 billion.
DEXX&R also reported positive growth in terms of sales in the year to September. Individual death, TPD and trauma product sales grew by 7% to $1.3 billion. Disability income product new business also grew, increasing to $452 million, representing a 2% rise year on year.
The researcher noted that the recent increase in group risk premiums of up to 40%, applied by the major group risk insurers to offset higher than expected TPD and salary continuance claims, are now feeding through into stronger premium inflows in the group risk market and this increase in premium is expected to continue for the next 12 months.
Meanwhile, Plan for Life’s (PFL) quarterly inflows report, for the year ending September 2013, also reflected the positive growth trend. PFL reported an increase of 9.4% in inflows into the lump sum market, with TAL (9.0%) and OnePath (8.9%) experiencing the highest percentage increases in their inflows year on year.
Individual risk income premium inflows increased by 8.9% in the period. TAL and OnePath were again the better performers in terms of percentage growth.
In the group risk market, premium inflows grew by 13.3%. TAL (20.1%) and AIA (19.5%) recorded well above average percentage increases in their group risk inflows.