Total individual risk new premiums increased by 0.4% in the year to March 2023 to reach $1.4 billion, where lump sum new business sales dipped slightly, but IP new business increased, according to DEXX&R.
The research firm’s Life Analysis Report for the year to March 2023 says that lump sum new business sales for the year were down 1.7% to $960.7 million from the $977.3 million recorded in the year to March 2022.
During the March quarter individual lump sum new premium decreased by 9.9% to $221 million, $24 million less than the $245 million recorded in December 2022 quarter, the firm states.
Although DEXX&R says the March quarter sales of $221 million were 0.7% lower than the $222 million recorded in the March 2022 quarter.
As to individual lump sum discontinuances, the DEXX&R Attrition Rate (which calculates discontinuances as a percentage of in-force premiums) was slightly higher at 9.6% in March 2023 when compared to the 9.3% attrition rate at March 2022.
Disability Income
DEXX&R says that in the year to March 2023 disability income new business increased by 5.6% to $419 million up from the $396 million recorded in the March 2022 year.
For the March quarter 2023 – disability income new business of $95 million was down 13.9% from the $111 million recorded in the December 2022 quarter.
And March 2023 quarter sales were 1.3% lower than the $97 million recorded in the March 2022 quarter.
Disability Income Discontinuances
The DEXX&R Attrition Rate for disability income business increased for the second year, up from the 9.4% recorded in March 2022 to 10.1% in March 2023.
DEXX&R says discontinuances remain at historically low levels “…indicating that notwithstanding the small increase during the year to March 2022 retention remains at a higher level than that applicable over most of the past 10 years.”
It says this trend is “…expected to continue as the terms and conditions offered by pre-APRA intervention products are significantly more favourable than those offered by current onsale products.”
Total risk in-force premium increased by 3.0% during the year ending March 2023, up from the $16.0 billion recorded at March 2022 to $16.5 billion at March 2023.
Gee, who would have thought that might happen? APRA? NAH !
“It says this trend is “…expected to continue as the terms and conditions offered by pre-APRA intervention products are significantly more favourable than those offered by current onsale products.”
And, for lump sum sales, …
“During the March quarter individual lump sum new premium decreased by 9.9% to $221 million, $24 million less than the $245 million recorded in December 2022 quarter, the firm states.”
The folks at APRA ( IP) and ASIC ( LIF) are paid big bucks to come up with this stuff.
Both have been batting out of their creases and need to hear an umpires decision.
Any umpires out there !
Adjust for inflation please.
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