{"id":54559,"date":"2021-03-09T12:23:05","date_gmt":"2021-03-09T02:23:05","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=54559"},"modified":"2021-03-10T07:13:49","modified_gmt":"2021-03-09T21:13:49","slug":"life-industry-continues-to-be-challenged-apra","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2021\/03\/09\/life-industry-continues-to-be-challenged-apra\/","title":{"rendered":"Life Industry ‘Continues to be Challenged’ – APRA"},"content":{"rendered":"

Net policy revenue for the life insurance industry for the year to 31 December 2020 was down 9.3 percent from a year earlier to $14.4 billion, according to APRA\u2019s\u00a0 latest Quarterly Life Insurance Performance Statistics<\/em> publication.<\/p>\n

The report also found that investment revenue for the December 2020 year had a loss of $2.3 billion down from $24.6 billion a year earlier, meaning total revenue for the year stood at $13.3 billion down 68.9 percent from $42.7 billion in the December 2019 year.<\/p>\n

A statement from the authority says that the life insurance industry\u2019s performance \u201ccontinues to be challenged\u201d (also see Performance of Risk Products Deteriorates<\/a>).<\/p>\n

It says the net loss after tax for the industry was $0.1 billion for the year to December 2020, an improvement from the $0.3 billion loss in the previous year.<\/p>\n

\u201cAlthough this was an improvement, the main driver was a significant release of reserves to offset the investment losses and claims payments made throughout the year,” APRA says.<\/p>\n

\"\"<\/a>APRA says that for the 12 months to December 2020, risk products reported a combined net loss after tax of $492.3 million, which was lower than the prior year\u2019s loss [of -1,331.0 billion].<\/p>\n

\u201cIn particular, Individual Disability Income Insurance (also known as Income Protection Insurance) reported a substantial loss, primarily driven by loss recognition as adverse claims experience persists.<\/p>\n

\u201cIndividual Lump Sum insurance, while still profitable, showed a deterioration in profit over the year.”<\/p>\n

In a highlights report the authority says that within risk products, Individual Lump Sum is the only category reporting a profit in the 12 months to December 2020.<\/p>\n

“Individual Disability Income Insurance (IDII) recorded a loss of $0.7 billion during the year, which is a $0.7 billion improvement in comparison to the previous year\u2019s result,” it says.<\/p>\n

\"\"<\/a>“Results for Group LS and Group DII have also improved this year; however, both products continued to record losses of $173.5 million and $122.5 million respectively.<\/p>\n

“The improvements across IDII, Group LS, and Group DII were primarily driven by release of reserves for each product throughout the year,” APRA says.<\/p>\n

The Quarterly Life Insurance Performance Statistics<\/em> publication provides industry aggregate summaries of financial performance, financial position, capital adequacy and key ratios.<\/p>\n","protected":false},"excerpt":{"rendered":"

Net policy revenue for the life insurance industry for the year to 31 December 2020 was down 9.3 percent from a year earlier to $14.4 billion, according to APRA\u2019s\u00a0 latest Quarterly Life Insurance Performance Statistics publication. The report also found that investment revenue for the December 2020 year had a loss of $2.3 billion down […]<\/p>\n","protected":false},"author":24,"featured_media":54564,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,8],"tags":[],"class_list":["post-54559","post","type-post","status-publish","format-standard","has-post-thumbnail","category-company-news","category-compliance-regulation"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/54559","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=54559"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/54559\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/54564"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=54559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=54559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=54559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}