Adviser Shortage and Policy Shifts Impact Life/Risk Market

2

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Recent insights from Dexx&r, a specialist research organization, depict a significant effect of governmental policies on Australia’s life/risk market, shaking even the traditionally sturdy group insurance subset.

Dexx&r's latest analysis shows a mere 0.4% rise in total risk in-force premiums for the year concluding in December 2023, reaching $16.5 billion.

Interestingly, new individual risk lump sum businesses declined by 5.4%, revealing the broader implications of the prevailing market conditions.

This market turbulence is further highlighted by the increase in individual lump sum discontinues, which escalated to 10.1% by December.

In a stark contrast, new disability income business saw a 7.3% rise during the same year, hitting $451 million, up from $420 million in the prior year.

The attrition rate for Disability Income business is on an upward trajectory, climbing from 9% in December 2020-just before APRA introduced new disability income products-to higher levels following the product releases in 2021.

Significantly, Dexx&r highlighted a 1% decrease in in-force group business for the year ending December 2023. This contraction points to the impact on premium receipts connected to default covers for superannuation funds.

“The introduction of the Protecting Your Super measures led to a reduction in members with default cover; nonetheless, overall premium receipts surged due to re-pricing of existing benefits,” Dexx&r stated.

Total In-force Group Risk Premium witnessed a small dip of 1%, lowering from $7.1 billion in December 2022 to $7.0 billion by December 2023.

TAL maintains its lead with a 32% market share, followed by AIA Australia, Zurich, and MLC Life.

Published:Friday, 17th May 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Medical Emergencies Lead Australian Travel Insurance Claims in 2024

28 Nov 2025: Paige Estritori

In 2024, medical incidents emerged as the leading cause of travel insurance claims among Australian travellers, accounting for more than 40% of all claims handled by nib Travel. This trend underscores the critical importance of securing comprehensive travel insurance to mitigate the financial risks associated with medical emergencies abroad. - read more

QBE Insurance Faces Market Challenges with Slower Premium Growth

28 Nov 2025: Paige Estritori

QBE Insurance Group, Australia's largest insurer by market value, recently reported a slowdown in premium rate growth, leading to a significant decline in its share price. The company's global average premium rate increased by only 1.5% in the nine months leading up to September 30, 2025, a decrease from the first-half pace. This deceleration is primarily attributed to slower growth in business property insurance prices. - read more

EQT's Bid to Acquire AUB Group: Implications for the Insurance Sector

28 Nov 2025: Paige Estritori

In a significant move within the Australian insurance industry, Swedish private equity firm EQT has extended a takeover offer for AUB Group, valuing the company at A$5.25 billion. This proposal includes a price of A$45 per share, representing a 25.1% premium over AUB's last closing price. Following the announcement, AUB shares surged up to 11% to A$39.95, though they remained below the offer price. - read more

Australian Insurers Report Record Profits Amid Market Dynamics

28 Nov 2025: Paige Estritori

Australia's general insurance industry has reported a return on equity (ROE) of 19% for the 2025 financial year, marking the highest in a decade. This impressive performance is attributed to a combination of factors, including benign weather conditions, strong investment gains, and the continued flow-through of premium increases. - read more

Seafood Distributor Prevails in Insurance Claim for Stock Losses Due to Power Outage

28 Nov 2025: Paige Estritori

In a recent ruling by the Australian Financial Complaints Authority (AFCA), a seafood distribution business has successfully claimed insurance for stock losses incurred during a week-long power outage. This case underscores the complexities surrounding insurance claims related to power failures and the importance of understanding policy exclusions. - read more

Click for more Insurance News