{"id":66058,"date":"2023-06-02T10:40:11","date_gmt":"2023-06-01T23:40:11","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=66058"},"modified":"2025-03-14T12:02:23","modified_gmt":"2025-03-14T01:02:23","slug":"risk-new-business-continues-sad-decline","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2023\/06\/02\/risk-new-business-continues-sad-decline\/","title":{"rendered":"Risk New Business Continues Sad Decline"},"content":{"rendered":"<div class=\"header row\">\n<div class=\"intro\">\n<h3>We wish it wasn&#8217;t, but our report on the continuing decline in genuine life insurance new business is clearly the Riskinfo Story of the Week&#8230;<\/h3>\n<\/div>\n<\/div>\n<p>Individual risk new business sales continued their downward spiral in 2022, according to latest data released by Plan For Life.<\/p>\n<p>While overall life insurance inflows increased by 2.5% in the year ending December 2022, new premium sales for individual lump sum policies declined by 5.3% compared to 2021, while individual income protection insurance new business sales were down by 4.1%.<\/p>\n<p>Drilling further into the data released by PFL over time reveals &#8216;genuine&#8217; or actual new business sales are making up an even smaller proportion of the overall new business numbers reported.<\/p>\n<blockquote><p>&#8230;actual new business fell by a further $67m in 2022<\/p><\/blockquote>\n<p>According to PFL, of the combined $1.7bn in individual risk lump sum and IP sales reported for 2022, $1.3bn of this came from in-force policy increases (eg stepped premium and CPI increases), while only $400m was generated by actual new business sales. This compares with 2021 numbers, where combined individual lump sum and IP sales were almost identical at $1.32bn, but where genuine new policy sales contributed $467m to this number, meaning actual new business fell by a further $67m in 2022.<\/p>\n<p>While individual new business sales continued to head south, overall inflows were up by 2.5%, with PFL noting that as long as combined new annual premiums (including age-based and CPI increases) are larger than total lapses and discontinuances, there will usually emerge a steady increase to overall inflows\/inforce business.<\/p>\n<figure id=\"attachment_66060\" aria-describedby=\"caption-attachment-66060\" style=\"width: 1185px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2023\/06\/230602-PFL-Data.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-66060\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2023\/06\/230602-PFL-Data.png\" alt=\"\" width=\"1185\" height=\"493\" srcset=\"https:\/\/riskinfo.com.au\/news\/files\/2023\/06\/230602-PFL-Data.png 1185w, https:\/\/riskinfo.com.au\/news\/files\/2023\/06\/230602-PFL-Data-300x125.png 300w, https:\/\/riskinfo.com.au\/news\/files\/2023\/06\/230602-PFL-Data-1024x426.png 1024w, https:\/\/riskinfo.com.au\/news\/files\/2023\/06\/230602-PFL-Data-768x320.png 768w, https:\/\/riskinfo.com.au\/news\/files\/2023\/06\/230602-PFL-Data-696x290.png 696w, https:\/\/riskinfo.com.au\/news\/files\/2023\/06\/230602-PFL-Data-1068x444.png 1068w, https:\/\/riskinfo.com.au\/news\/files\/2023\/06\/230602-PFL-Data-1010x420.png 1010w\" sizes=\"auto, (max-width: 1185px) 100vw, 1185px\" \/><\/a><figcaption id=\"caption-attachment-66060\" class=\"wp-caption-text\">Source: Plan For Life Risk Premium Inflows &amp; Sales Year Ended December 2022 &#8230;A steady trend of increasing overall risk inflows fails to highlight the worrying downward trend in actual life insurance new business sales&#8230;<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>We wish it wasn&#8217;t, but our report on the continuing decline in genuine life insurance new business is clearly the Riskinfo Story of the Week&#8230; Individual risk new business sales continued their downward spiral in 2022, according to latest data released by Plan For Life. While overall life insurance inflows increased by 2.5% in the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":66063,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,8291],"tags":[],"class_list":["post-66058","post","type-post","status-publish","format-standard","has-post-thumbnail","category-general","category-story-of-the-week"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/66058","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=66058"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/66058\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/66063"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=66058"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=66058"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=66058"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}