Confirming other industry data, life risk sales have taken a fall in the 12 months to September 2019, reaching the lowest level of sales in any September quarter over the past five years, according to DEXX&R’s latest Life Analysis Report.
The report found total risk new business fell 22.1 percent over the year, down from $2.6 billion recorded in September 2018 to $2 billion September 2019.
Total risk in-force has fallen 5.6 percent over the year to September 2019 from the $16.3 billion recorded in September 2018 to $15.4 billion.
Individual lump sum new business hit its lowest value recorded in the past five years. The industry wrote $1.02 billion of lump sum new business in the 12 months ending September 2019, down 16.4 percent on the $1.22 billion recorded in the year to September 2018
Three of the top ten life companies did record an increase in lump sum new business over the year, according to the report:
- MLC recorded a $24.6 million increase in new business to $190.7 million
- Zurich recorded an $18.2 million increase to $117.3 million
- Westpac recorded a $0.24 million increase to $99.6 million at September 2019
“The continued decrease in business is the result of lower sales through advice channels and the suspension or cessation of sales of direct lump sum products by several major life companies,” the report stated.
The report also noted that ongoing restructuring of large institutionally owned dealer groups has exacerbated dislocation in the advice channel.