For IP cover, premiums are increasing for both advised and direct with a trend towards widening the gap between them, the actuary and research company says in a media release.<\/p>\n
Plan for Life says that in terms of market changes during the year it has seen consolidation in the direct life insurance market, down to 129 products (155 were offered in 2019).<\/p>\n
\u201cMost markedly is the reduced number of term life products (six fewer) and accidental benefit products (11 fewer). There has also been a significant drop in CCI products on offer.\u201d<\/p>\n
It notes that new premiums in the direct space are dominated by funeral cover (34 percent) and term life (38 percent) followed by IP (19 percent). Accidental death, trauma and TPD together account for less than nine percent of new premiums to December 2019.<\/p>\n
… Australian Life Insurance market total sales of Lump Sum and IP products in 2019 have fallen across the distribution channels…<\/p><\/blockquote>\n
The company states that the Australian life insurance market total sales of Lump Sum and IP products in 2019 have fallen across the distribution channels from $1,792m in 2018 to $1,457m in 2019. The direct life channel, comprising 21 percent of the total market, also followed this trend with sales falling from $438 million in 2018 to $301 million in 2019.<\/p>\n
\u201cWhilst March quarter data was not available at the time of reporting, we expect to see further declines in new annual premiums and an increase in lapse rates as a result of the economic impact of Covid-19,\u201d the company says.<\/p>\n
The leading companies as at 31 Dec 2019 with the greatest portion of Lump Sum Risk Inflows at $374m (23 percent market share) include Greenstone, followed by TAL at $299m (18 percent market share).<\/p>\n
In the Individual Risk Income Protection market, TAL has the greatest portion at $60m (36 percent market share) followed by Greenstone at $42m (25 percent market share), the statement adds.<\/p>\n","protected":false},"excerpt":{"rendered":"
A comparison of average advised premiums and average direct premiums across a number of providers and sellers demonstrated that for life cover, advised premiums are reducing while direct premiums have been relatively stable over the years, according to a new report. Plan for Life\u2019s State of the Direct Life Insurance Market 2020 also found that […]<\/p>\n","protected":false},"author":24,"featured_media":50999,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-50996","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/50996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=50996"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/50996\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/50999"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=50996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=50996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=50996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}