Life premiums on the rise

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26 July 2010

Life insurance premium inflows for the 12 months ending March were up 10.8% to $8.4 billion, according to research house Plan For Life.

Tower led the pack with premium inflow growth of 33.2% for the period followed by MLC with inflows of 13.4% and AMP achieving 12.2%.

Inflows for the individual total and permanent disability (TPD) risk market grew by 12.1% with all major insurers reporting significant premium growth.

AIG subsidiary AIA led TPD growth, up 19.7%, followed by Tower with a 14.5% increase, ING up 13.2% and Comminsure up 12.6%.

Plan For Life says the good inflow growth for this market had been driven by stronger housing demand, with more homeowners seeking insurance to protect their mortgage payments.

The income protection market saw inflows increase by 11.5% overall with BT dominating the market with 25.2% premium growth, followed by AIA with 17.1% and ING 15.5%.

Plan for Life says income protection sales are closely related to how small business is performing, and price is a factor in winning business.

The group market saw premium inflows grow by 8.5% for the 12 months to March 31. Tower reported the strongest inflow growth with a 77.8% rise followed by Macquarie up 58.1% and MLC 22.7%.

Group risk sales dropped sharply by 31.9% year on year, which is due to the cyclical remarketing nature of this business.

“This market is affected by trends in the stand-alone corporate superannuation market as well as master funds and other investment platforms extending their services by providing risk insurance services,” it said.