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

Rural Affinity and Munich Re Strengthen Agricultural Insurance in Australia

09 Jan 2026: Paige Estritori

In a significant development for Australia's agricultural sector, Rural Affinity has renewed its partnership with Munich Re Specialty - Global Markets under a new five-year agreement. This collaboration, which began in 2006, is set to enhance the availability and scope of agricultural insurance products across the country. - read more

WFI Insurance Highlights Significant Drop in Farm Liability Claims

09 Jan 2026: Paige Estritori

WFI Insurance has reported a notable decrease in farm liability claims across most categories, signaling a positive trend in safety practices within the Australian agricultural sector. The insurer observed a 75% reduction in falls from height over the past year, alongside a 30% decline in impact injuries, marking the lowest level in four years. - read more

Elders Insurance Highlights Increased Summer Storm Risks for Farmers

09 Jan 2026: Paige Estritori

Elders Insurance is urging Australian farmers to prepare for another damaging summer, with claims data revealing the scale and financial impact of storm activity across the country's agricultural regions. Analysis of storm-related farm insurance property claims over the last two years indicates that summer accounts for the highest number of claims nationally. - read more

Insuregroup Achieves Significant Milestone in Truck Insurance Policies

09 Jan 2026: Paige Estritori

Insuregroup, a specialist insurance brokerage serving Australia's transport and logistics sector, has recently achieved a significant milestone by processing over 10,000 insurance policies since its inception. This accomplishment includes a 25% year-on-year increase in policy count, highlighting the escalating demand for comprehensive truck insurance solutions among Australian freight operators. - read more

Queensland Aligns with National Heavy Vehicle Regulator

09 Jan 2026: Paige Estritori

In a significant move towards regulatory consistency, Queensland has transferred its heavy vehicle compliance responsibilities to the National Heavy Vehicle Regulator (NHVR). This transition aligns Queensland with New South Wales, Victoria, South Australia, Tasmania, and the Australian Capital Territory, all of which have already integrated their heavy vehicle regulations under the NHVR's oversight. - read more

Click for more Insurance News