The Australian life insurance industry paid more than $7 billion in claims in 2014, according to the latest figures from the Australian Prudential Regulation Authority (APRA).
Reporting on the performance of the life insurance sector for the period ending 31 December 2014, APRA’s figures show that $7.032 billion was paid in death and disability claims over the past year. This is up considerably on the previous year’s figure of $6.259 billion.
Net profit after tax for the total industry was $2.5 billion for the year ending 31 December 2014. This represented an increase of 23.4% on the previous year. The December quarterly profit result was also up, at $711 million, compared with $527 million for the September 2014 quarter.
Risk products achieved an after tax profit of $134 million for the quarter. Individual risk products contributed $34 million and group risk products contributed $100 million to this figure.
We should be shouting about this from the roof tops and sending a copy to every ambulance chasing law firm and current affairs program that says “those big bad insurance comapnies only ever want to weasel out of valid claims”. I feel proud that our industry makes such a valuable financial contribution back into society.
I totally agree with Technical_View. A bank makes a profit of $6 billion+ and it makes the front page but $7 Billion+ paid out in claims doesn’t even get a mention. How do we as front-line advisers get this message to the general public?????????
Maybe we should have a fighting fund and take out our own adverts!
By the way technical_view try putting this article on Facebook, twitter etc
Ted where have you been for the last 8 years? There is a business – known to many – called the risk store which provides the only service in the industry that gives advisers these statistics in more detail, plus top claims causes, plus some critical messages for consumers, already beautifully crafted into a two-sided A4 flyer, every year. Those who use these show them to every client they see. That’s tens of thousands of consumers a year engaging in a direct dialogue about this amazing news.
What we do ask and have done over all those years, is why the insurers themselves with budgets for advertising don’t collectively go to the public with this great message?
And Technical View: the press are provided with the high level stats too, just as riskinfo has done this release. Mainstream press will not publish good news; the industry has to pay to get its message out there. Sad…true.
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