Generating plenty of reader engagement this week was our report on the overarching message shared by TAL at Riskinfocus 25 events that the life insurance sector is growing for the first time in years…
The life insurance industry is growing again for the first time in many years, in a way which is both real and sustainable.
This is the overarching and positive message shared with a thousand advisers around the country by TAL’s Chief Executive, Individual Life, Gavin Teichner, during the Riskinfocus 25 Risk Advice CPD Tour series of events this month.
Teichner referenced a range factors relating to areas such as new business sales, the number of advisers writing life insurance business, enhanced licensee support and evolving distribution models, telling audiences the combined impact of these factors is seeing more Australians accessing risk advice.
As advice businesses increase scale and improve their operational efficiencies, Teichner reported:
- An 8.3% increase in life insurance new business sales across the sector to December 2024
- 5,600 advisers who have written at least one life insurance new business policy in the last 12 months
- $316 million in new business sales written in the last year
- An average of $50,000 new risk premium business written per adviser
Teichner offered a context relating to why the need to help more Australians secure a better financial future has never been greater, noting key statistics including:
- A 23% increase in household debt in recent times
- 57% of Australians have less than three months of mortgage repayments in their savings
- The impact of underinsurance is estimated to cost taxpayers $25 billion
He also reflected on the significant opportunities that exist in the life insurance industry to support and accelerate this recent growth, noting there remains a clear need to invest in a number of critical areas to assist advisers and advice businesses, including:
- Digital capabilities that simplify advice business operations
- Safe and accessible data systems
- Comprehensive insights and data analytics
- Enhanced education and Professional Year support
To take advantage of these new risk advice growth opportunities, Teichner urged that all market participants must play their role, which includes continuing to evolve to better serve a constantly changing Australian community.
Top photo: TAL’s Gavin Teichner shares his positive outlook on the future of the risk advice sector last week with a Riskinfocus 25 Sydney audience of over 250 …real and sustainable growth emerging
