Individual lump sum and income protection insurance sales are continuing their downward trend, according to latest data released by Plan For Life.
In the year ending September 2019, PFL reports individual lump sum new business dropped by almost 18 percent (17.8 percent), following a drop of 11 percent in the year to June 2019.
There was a similar trend for individual income protection insurance sales, which dropped by 13.3 percent in the year to September, following an almost 10 percent (9.9 percent) drop in the year to June 2019 (see also: Risk Sales Continue to Decline).
…it is important not to read too much into some of the reductions in business
When also taking group risk new business trends into account, PFL reports overall annual sales in the risk market dropped by almost a quarter, or 24.2 percent in the year ending September 2019.
While AMP (-63.8 percent), BT / Westpac (-61.7 percent), AIA (-42.8 percent) and CommInsure (-35.7 percent) all experienced very significant falls in their risk sales year-on-year, those of MetLife (27.0 percent), MLC (8.9 percent) and Zurich (6.0 percent) were higher.
In its notes, the researcher points out that, for the balance of the report “…it is important not to read too much into some of the reductions in business as some companies may have a deliberate strategy of getting rid of unprofitable business and moving funds from Life Office products to Trust based products (i.e. non-life insurance based).