Life insurance risk inflows appeared to be treading water in 2020, up only marginally by 0.8 percent from 2019, according to Plan for Life’s market overview for the year ended December 2020.
A statement from the actuarial and research firm says its Overview of Life Insurance Risk Market Inflows & Sales: 12 months to December 2020 found that total new premium sales dropped substantially by 19.5 percent.
However it noted that within the three biggest losses or gains by insurers, “… most of the action was attributable to group risk business.”
Plan for Life says Individual Risk Lump Sum Sales were down by 4.6 percent compared to 2019, adding that virtually all the participants in this market experienced lower annual sales.
AIA Australia, ClearView IP Spike
In reporting an overall decline of 3.7% in new business sales in the Individual Risk Income Market in 2020, PFL singled out significant spikes in new business sales reported by AIA Australia (37.8%) and ClearView Wealth (38.4%). These spikes were balanced by sharp decreases experienced by MLC Life Insurance (-36.0%) and BT/Westpac (-28.1%).