Risk premium inflows increased just over 7% for the year to the end of September despite overall annual sales in the risk market decreasing by nearly 25% according to Plan For Life.
Data released by the research group for the year to the end of September 2015 shiws that inflows were up 7.1% from $14.2 billion to $15.2 billion over the 12 months to 30 September 2015 with BT/Westpac, MetLife and OnePath recording premium inflow increases above 10%. The inflow growth was half of that of the previous year which recorded 14.7% growth.
However, overall annual sales dropped 23.7% due to very substantial decreases in group risk sales year on year, with the decrease in stark contrast to the previous year’s total sales increase of 23.8%
…overall annual sales dropped 23.7% due to very substantial decreases in group risk sales year on year…
This year’s decrease was particularly marked at MetLife, TAL, AIA and AMP with MetLife recording a sales decrease of 71%, TAL recording a decrease of 60% and AIA recording a decrease of 37.3%. This was in contrast to OnePath and National Australia / MLC which recorded growth of 17.2% and 13.8% respectively.
The sharp drop was driven by a downturn in group risk sales which declined by 52.3% compared to individual risk lump sum and individual risk income sales which fell by 1.4% and 3.6%, respectively. The group risk sales decrease follows a massive increase in the previous year in which the sector recorded an increase of 83.1% in sales.
Plan For Life stated the widespread movements in group risk sales were due to the “inherent cyclical remarketing nature” of the sector which made it a volatile segment of the overall risk market.
The top-ranked insurers across market share and growth categories in the year to 30 September 2015 were:
(Note: the numbers in brackets represent the insurers’ position as reported for the period ending 30 June 2015)
Top 5 Companies Total Risk Premium Inflows (Market Share)
- TAL (1)
- AIA Australia (2)
- AMP (3)
- NAB/MLC (5)
- CommInsure (4)
Top 5 Companies Total Risk Premium Inflows (Growth)
- BT/Westpac (2)
- MetLife (3)
- OnePath (4)
- AIA Australia (1)
- NAB/MLC (-)
Top 5 Companies Total Risk Premium Sales (Market Share)
- NAB/MLC (1)
- OnePath (4)
- CommInsure (3)
- AMP (5)
- AIA Australia (2)
Top 5 Companies Total Risk Premium Sales (Growth)
- OnePath (4)
- NAB/MLC (3)
- Zurich (-)
- CommInsure (2)
- BT/Westpac (-)
Top 5 Companies Individual Risk Lump Sum Inflows (Market Share)
- AMP (1)
- NAB/MLC (2)
- OnePath (3)
- CommInsure (4)
- TAL (5)
Top 5 Companies Individual Risk Lump Sum Inflows (Growth)
- Macquarie Life (1)
- AIA Australia (2)
- Zurich (3)
- BT/Westpac (4)
- OnePath (-)
Top 5 Companies Individual Risk Lump Sum Sales (Market Share)
- OnePath (1)
- AMP (2)
- NAB/MLC (3)
- TAL (-)
- BT/Westpac (4)
Top 5 Companies Individual Risk Lump Sum Sales (Growth)
- Zurich (1)
- OnePath (3)
- TAL (4)
- NAB/MLC (2)
(All other companies posted negative growth)
Top 5 Companies Individual Risk Income Inflows (Market Share)
- AMP (1)
- NAB/MLC (2)
- OnePath (3)
- TAL (4)
- BT/Westpac (5)
Top 5 Companies Individual Risk Income Inflows (Growth)
- Macquarie Life (1)
- BT/Westpac (2)
- Zurich (3)
- TAL (4)
- AIA Australia (-)
Top 5 Companies Individual Risk Income Sales (Market Share)
- OnePath (1)
- NAB/MLC (2)
- BT/Westpac (3)
- TAL (4)
- AMP (5)
Top 5 Companies Individual Risk Income Sales (Growth)
- Zurich (1)
- OnePath (2)
- Macquarie Life (-)
- TAL (-)
- AIA Australia (-)
Top 5 Companies Group Risk Inflows (Market Share)
- AIA Australia (1)
- TAL (2)
- CommInsure (3)
- MetLife (4)
- NAB/MLC (5)
Top 5 Companies Group Risk Sales (Market Share)
- CommInsure (4)
- NAB/MLC (-)
- AIA Australia (3)
- OnePath (5)
- MetLife (-)
