{"id":56442,"date":"2021-06-29T17:13:14","date_gmt":"2021-06-29T07:13:14","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=56442"},"modified":"2024-10-30T08:44:47","modified_gmt":"2024-10-29T22:44:47","slug":"discontinuance-rates-continue-to-tumble-but-so-does-ip-new-business","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2021\/06\/29\/discontinuance-rates-continue-to-tumble-but-so-does-ip-new-business\/","title":{"rendered":"Discontinuance Rates Continue to Tumble …But so Does IP New Business"},"content":{"rendered":"

Individual discontinuance rates continue their march south, with latest data from DEXX&R reporting both individual lump sum and disability continuances have fallen below 10% – but this trend equally applies to IP new business.<\/p>\n

The research firm’s Life Analysis Report<\/em> for the year ending March 2021 documents individual lump sum discontinuances at 9.9% (down from 10.1% in the year to December 2020), while individual disability income discontinuances have fallen to a low of 8.8%, down from what was already a 10-year low of 9.1% in the year to December 2020 (see: Risk New Business Sales Recover<\/a>).<\/p>\n

This further reduction in individual discontinuance rates reinforces DEXX&R’s message that this low level of discontinuances indicates that clients are retaining their existing policies at a higher rate than has been the case over the past ten years – especially for individual IP contracts.<\/p>\n

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Taken from DEXX&R’s Life Analysis Report for the year ending March 2021 …individual lump sum discontinuances at their lowest level in a very long time<\/figcaption><\/figure>\n

Individual risk new business<\/strong><\/p>\n

Meanwhile, individual lump sum new business sales – while higher in the March 2021 quarter compared with the same quarter a year ago – were still down by a little over 1% for the year ending March 2021. DEXX&R says this is the third consecutive yearly decline in individual lump sum new business since March 2018.<\/p>\n

While individual lump sum new business has remained relatively static in the year to March 2021, the same cannot be said for new individual IP business, which saw a decrease of 9.4% in the year ending March 2021. DEXX&R notes this significant decline in individual income protection new business sales represents a 10-year low.<\/p>\n

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…But while individual discontinuance rates continue heading south, so does individual IP new business, which has fallen to a 10-year low, according to DEXX&R’s latest data<\/figcaption><\/figure>\n

It attributes the IP sales decline to the impact of the Covid-19 pandemic, and also to disruption in advice channels and APRA’s mandated product intervention measures, which came into effect at the end of March 2020.<\/p>\n","protected":false},"excerpt":{"rendered":"

Individual discontinuance rates continue their march south, with latest data from DEXX&R reporting both individual lump sum and disability continuances have fallen below 10% – but this trend equally applies to IP new business. The research firm’s Life Analysis Report for the year ending March 2021 documents individual lump sum discontinuances at 9.9% (down from […]<\/p>\n","protected":false},"author":3,"featured_media":56452,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-56442","post","type-post","status-publish","format-standard","has-post-thumbnail","category-general"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/56442","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\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=56442"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/56442\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/56452"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=56442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=56442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=56442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}