{"id":75309,"date":"2025-01-14T13:30:03","date_gmt":"2025-01-14T02:30:03","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=75309"},"modified":"2025-12-19T09:12:31","modified_gmt":"2025-12-18T22:12:31","slug":"fewer-advisers-blamed-for-lower-new-business","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2025\/01\/14\/fewer-advisers-blamed-for-lower-new-business\/","title":{"rendered":"Less Business Written Due to Drop in Adviser Numbers"},"content":{"rendered":"
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Generating plenty of reader engagement this week was our report on last year’s drop in individual risk new business premium, and speculation on why fewer policies are being sold…<\/h3>\n<\/div>\n<\/div>\n

A drop in new risk business is largely down to there being fewer advisers. That\u2019s the conclusion of Mark Kachor<\/strong>, MD of research firm DEXX&R<\/a>.<\/p>\n

Figures just published by the company show total individual risk new business premium dropped 16.3% in the 12 months to September 2024 to $1.16bn.<\/p>\n

The firm also reports that total risk in-force premium dropped 1.2% in the 12 months to September, down from $16.5bn in the previous corresponding period to $16.3bn.<\/p>\n

Lump sum new business premium was down 12.9% to $820m for the 12-month period, a $79m drop on September 2023’s figure.<\/p>\n

\"Lump<\/a>…We have now lost almost half the number of advisers we had five years ago…<\/p><\/blockquote>\n

\u201cIt is an ongoing problem the industry has,\u201d says Kachor. \u201cWe have now lost almost half the number of advisers we had five years ago. That has hit the risk life insurers harder than it has hit wealth management.<\/p>\n

\u201cThe demographics of those that predominantly wrote life insurance were older advisers.<\/p>\n

\"Mark<\/a>
Mark Kachor.<\/figcaption><\/figure>\n

\u201cI think there has been an even greater decrease in the number of people selling life insurance, and the inevitable result of that is you have fewer sales. You shrink distribution, you shrink sales.\u201d<\/p>\n

The firm also reports that individual lump sum risk new business was down 3.9% for the September 2024 quarter. During the same period individual lump sum new premium fell 5.7% to $200m (Q3 2023 $237m).<\/p>\n

Disability income business also experienced a drop during the 12 months to September 2024, down 23.5% to $343m on the previous corresponding period.<\/p>\n

\"DXX&R<\/a>Disability income new business in Q3 2024 was down 21.4% to $60m from the $78m recorded in Q2 2024. September 2024 quarter sales were 52.9% lower than the $129m recorded in Q3 2023.<\/p>\n

See: Year Starts with Fewer Advisers<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Generating plenty of reader engagement this week was our report on last year’s drop in individual risk new business premium, and speculation on why fewer policies are being sold… A drop in new risk business is largely down to there being fewer advisers. That\u2019s the conclusion of Mark Kachor, MD of research firm DEXX&R. Figures […]<\/p>\n","protected":false},"author":23,"featured_media":75314,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,3,5622],"tags":[],"class_list":{"0":"post-75309","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-company-news","8":"category-general","9":"category-superannuation"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/75309","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\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=75309"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/75309\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/75314"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=75309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=75309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=75309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}