Both individual risk lump sum sales and individual risk income new premium sales saw healthy rises in the year ended December 2023, according to Plan for Life’s latest data.
The research firm’s latest Market Overview points to reported individual risk lump sum sales being up 7% to $1,270 million compared to 2022 “…with most of the leading participants in this market recording higher annual sales.”
In the individual risk income market total new premium sales increased by 6.8% in 2023 to reach $565.5 million.
The firm says that overall, year on year new premium sales were up 8.8% to $2,282 million.
In the year ended September 2023 individual risk lump sum sales and new risk income sales rose just slightly (see: Lift in Lump Sum).
Risk Inflows
Plan for Life says overall risk inflows in 2023 were only marginally lower by 0.2% than those reported for 2022 and sat at $18,068.5 million, while annual premium inflows in the individual risk lump sum market rose slightly by 1.1% to reach $7,916.1 million.
In the individual risk income market year-on-year risk income inflows were up 2.2% to $3,374.1 million.
All well and good until you think, I mean really think, about the lack of comprehensive, stripped-down contractual definitions that are making up these 'new' generation of IP policies.
No self-respecting adviser would take a loyal client's money to get involved with these fairy-floss policies. If he/she did they would have to feel awful about it, knowing the wonderful, feature-rich policies on offer prior to 2021. Damned if you do and damned if you don't. If this article is to be believed then it seems the former is the case. Advisers still have to eat and feed families, that's why. Just wait for the claims fallout in the years ahead.
It has only been 2 – 3 years since these horrid new excuses for policies were unleashed upon the unsuspecting consumer and hapless adviser community. Client best interest in full flight, eh?! Good on ya life companies and lobbyists! Give 'em less and charge 'em more! Executive bonuses to da moon Alice 🙂 With less advisers to help clients in a claim now and less in future added to this malaise, it is a disaster area in the making.
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