{"id":65401,"date":"2023-04-18T11:41:07","date_gmt":"2023-04-18T00:41:07","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=65401"},"modified":"2023-04-18T11:41:07","modified_gmt":"2023-04-18T00:41:07","slug":"individual-risk-sales-slip-ip-new-business-revives","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2023\/04\/18\/individual-risk-sales-slip-ip-new-business-revives\/","title":{"rendered":"Individual Risk Sales Slip – IP New Business Revives"},"content":{"rendered":"

Total individual risk sales were down 1.1% in the 12 months to December 2022, while disability income new business rose 7.6%, putting an end to an 11-year low for disability new business, according to DEXX&R<\/a>.<\/p>\n

The research firm\u2019s latest Life Analysis Report<\/em> found that total individual risk new premiums decreased by 1.1% to $1.4 billion in the year to December 2022, while disability income new business increased by 7.6% to $420 million, up from the $391 million recorded in the 12 months to December 2021.<\/p>\n

DEXX&R says this increase \u201c\u2026puts an end to an 11-year low for disability new business recorded over the year to September 2022\u201d (see: IP New Business Hits 11-Year Low<\/a>).<\/p>\n

\"\"<\/a>Meanwhile, total risk in-force premium increased by 3.0% to reach $16.4 billion, up from the $15.9 billion recorded at December 2021.<\/p>\n

DEXX&R says that in the December 2022 year individual risk lump sum new business was down 4.4% to $962.3 million from the $1.01 billion recorded in the year to December 2021.<\/p>\n

During the December quarter individual lump sum new premium decreased by 2.6% to $245 million, $7 million less than the $252 million recorded in the September 2022 quarter.<\/p>\n

December quarter sales of $245 million were 4.0% higher than the $236 million recorded in the December 2021\u00a0 quarter.<\/p>\n

\"\"<\/a><\/strong>Looking at individual lump sum discontinuances, the DEXX&R Attrition Rate, which calculates discontinuances as a percentage of in-force premiums, was slightly higher at 9.3% in December 2022 when compared to the 9.2% attrition rate at December 2021.<\/p>\n

Quarterly Disability Income<\/strong><\/p>\n

In the December 2022 quarter, disability income new business of $111 million was down 1.0% from the $112 million recorded in the September 2022 quarter.<\/p>\n

However December 2022 quarter sales were 18.1% higher than the $97 million recorded in the December 2021 quarter.<\/p>\n

…the attrition rate for disability income business increased for the second year..
\n<\/strong><\/p><\/blockquote>\n

The firm also notes that the attrition rate for disability income business increased for the second year, up from the 9.2% recorded in December 2021 to 9.8% in December 2022.<\/p>\n

DEXX&R says that discontinuances remain at historically low levels \u201c\u2026indicating that not withstanding the small increase during the year to December 2022 retention levels remain at a higher level than that applicable over the past 10 years.”<\/p>\n

It says this trend is expected to continue “…as the terms and conditions offered by existing products are significantly more favourable than those offered by current onsale products.\u201d<\/p>\n

\"\"<\/a>The report includes data on all risk business issued by life companies from their statutory funds.<\/p>\n","protected":false},"excerpt":{"rendered":"

Total individual risk sales were down 1.1% in the 12 months to December 2022, while disability income new business rose 7.6%, putting an end to an 11-year low for disability new business, according to DEXX&R. The research firm\u2019s latest Life Analysis Report found that total individual risk new premiums decreased by 1.1% to $1.4 billion […]<\/p>\n","protected":false},"author":24,"featured_media":65419,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-65401","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\/65401","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=65401"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/65401\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/65419"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=65401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=65401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=65401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}