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.

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

New Legislation Prohibits Life Insurers from Using Genetic Test Results

08 Mar 2026: Paige Estritori

The Australian government has enacted legislation prohibiting life insurers from using the results of genetic tests to refuse coverage or increase premiums. This landmark decision aims to eliminate genetic discrimination and encourage individuals to undergo potentially life-saving genetic testing without fear of financial repercussions. - read more

Australian Insurers Face Challenges in Cyber and AI Risk Readiness

08 Mar 2026: Paige Estritori

Recent findings from the PwC Insurance Banana Skins Survey have raised concerns about the preparedness of Australian insurers in managing emerging risks, particularly those associated with cyber threats and artificial intelligence (AI). The survey, which gathered insights from 698 insurance executives across 42 territories, including 37 from Australia, indicates that Australian insurers scored 6.6% lower on the Preparedness Index compared to their global counterparts. - read more

Rising Insurance Premiums Pose Challenges for Australian Businesses

08 Mar 2026: Paige Estritori

Businesses across New South Wales are grappling with substantial increases in insurance premiums, prompting calls for urgent reforms to alleviate financial pressures. According to Business NSW's latest Business Conditions Survey, nearly 80% of businesses have experienced double-digit hikes in insurance costs over the past year, with one in three reporting increases of 30% or more. These surges significantly outpace the annual inflation rate of 2.5%, placing an undue burden on the business community. - read more

Impact of Victorian Bushfires on Home Insurance Costs

08 Mar 2026: Paige Estritori

Recent bushfires in Victoria have caused significant devastation, leading to concerns about rising insurance premiums for homeowners in affected areas. The Insurance Council of Australia (ICA) has declared the fires a catastrophic event, with over 2,600 claims already lodged. This situation underscores the financial challenges faced by residents in regions prone to natural disasters. - read more

Rising Home Insurance Costs Affect 1.6 Million Australian Households

08 Mar 2026: Paige Estritori

A recent report by the Actuaries Institute has highlighted a concerning trend: approximately 1.6 million Australian households are now facing home insurance affordability stress. This marks a significant increase from the 1.24 million reported the previous year, indicating a growing financial burden on homeowners due to escalating insurance premiums. - read more

Click for more Insurance News