New Group Insurance Sales Fall

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A period of negative growth in new group insurance annual premiums has led to a fall in year on year sales results, according to DEXX&R’s March 2013 Life Analysis Report.

The researcher reported that the 2012 pattern of year on year growth in the Australian risk market was reversed this quarter, with total new annual premium decreasing by 6.1% to $2.4 billion in the year ending March 2013.

This was due to a significant drop in new group risk business, which achieved a new annual premium result of $678 million for the March 2013 period, compared to $990 million in March 2012. DEXX&R noted that due to the timing of large premium payments by group policyholders (typically industry funds), significant fluctuations can occur from quarter to quarter in reported group new premium.

Individual lump sum risk business increased saw the largest increase in new premiums, at 12.2% growth. New individual disability premiums were up 5.2% year on year.

Total market in-force premium growth remained steady at 10.17% (year on year), reaching $11 billion in the twelve months to March 2013. The individual lump sum market recorded a 10% increase, while disability in-force business grew by 9.3%. Group risk in-force premium increased by 11% to $3.7 billion.

 



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