Latest data released by Plan For Life reports a sharp decline in individual income protection insurance sales, offset only marginally by a small increase in lump sum sales growth.
The research firm’s quarterly market overview for the year ending September 2024 reports new risk income (income protection insurance) sales experienced a downturn of 8.3%, while lump sum risk sales grew by a modest 2.4%.
These numbers sit in contrast to strong sales data in recent quarterly reporting
These numbers sit in contrast to strong sales data in recent quarterly reporting, where the 8.3% fall in new IP sales to September 2024 (which includes CPI and age-based increases on in-force business) follows IP sales growth of just under 7% reported by PFL in December 2023, 6.5% in the year to March 2024 and by 3.6% to June 2024.
While sales growth was still positive for individual lump sum new business, the 2.4% increase in the latest data contrasts with lump sum sales spikes of 7% or more in the years ended December 2023, March 2024 and June 2024 (see: More Upward Movement in Lump Sum, IP Sales).
While starting from a lower volume base, but still of interest, NobleOak, ClearView Wealth and MetLife Australia each experienced double-digit lump sum new business sales growth in the year to September 2024, with NEOS Life (just over 50%) and PPS Mutual (just over 25%) accounting for the majority of the lump sum growth reported by NobleOak.
Premium inflows
The research firm reports overall risk premium inflows (which includes new sales and inforce premiums) increased marginally over the year to September 2024, up just 0.7%.
This result included small declines in both individual lump sum and IP inflows, which were offset and moved overall into the positive by by an inflow increase in the group insurance space.
