Adviser Shortage and Policy Shifts Impact Life/Risk Market
Adviser Shortage and Policy Shifts Impact Life/Risk Market
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.
The decline of life/risk advisers paired with the Australian Prudential Regulation Authority's (APRA's) intervention in the Individual Disability Income (IDII) insurance sector imposes fresh challenges on the market, hinting at recovery only intermittently.
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.
In June 2025, the Australian Financial Complaints Authority (AFCA) ruled in favour of a policyholder in a dispute over the duration of income protection payments. The case involved Resolution Life Australasia and centred on the insurer's decision to cease payments earlier than the policyholder expected. - read more
In October 2025, Swiss Re, a leading global reinsurer, announced a temporary halt on accepting new life insurance business in Australia. This decision aims to address concerns over the sustainability of Total and Permanent Disability (TPD) products in the market. - read more
Suncorp has successfully finalised its catastrophe reinsurance program for the financial year 2026, achieving a reduction in costs due to improved market conditions. This strategic move is set to bolster the insurer's financial resilience and operational efficiency. - read more
The Australian general insurance industry is on a trajectory for substantial growth, with direct written premiums (DWP) projected to exceed $144 billion by 2029. This forecast, provided by data and analytics firm GlobalData, reflects a compound annual growth rate (CAGR) driven by increasing demand for coverage in response to the rising frequency of natural disasters. - read more
Australia's personal accident and health (A&H) insurance sector is poised for steady growth, with projections indicating an annual increase of over 4% through to 2030. This positive outlook is attributed to factors such as digital distribution, embedded coverage options, and heightened health concerns among the population. - read more
Life insurance is a fundamental component of a robust financial plan, yet its significance is often underestimated. It serves as a safety net, ensuring that your loved ones are financially secure in the event of your absence. Understanding life insurance is the first step towards safeguarding your family’s future. - read more
Being prepared when it comes to life insurance claims can make a world of difference. Proper preparation helps you prevent delays and denials, ensuring that your loved ones receive the financial support promised by your policy without unnecessary hold-ups. By paying attention to the details, you can streamline the claims process, giving you and your family peace of mind during what is already a stressful time. - read more
Life insurance is an essential safety net for families, providing financial security when it's needed the most. As your family grows, the importance of having a well-structured life insurance policy becomes even more critical. In the busy lives we lead today, it’s easy to overlook this crucial aspect of financial planning. However, ensuring your coverage meets your family's evolving needs is vital. - read more
Life insurance can seem complex at first, but understanding the basics can help demystify this important financial product. At its core, life insurance is a contract between you and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon your passing, in exchange for premium payments. - read more
When it comes to life insurance, a pre-existing condition refers to any medical condition or illness that you have been diagnosed with before applying for a life insurance policy. - read more
Start Here !
Apply now for your free Insurance assessment and price comparisons!
Knowledgebase
Whole Life Insurance: A type of life insurance that provides coverage for the insured's entire lifetime, with a savings component that builds cash value.