Lifebroker: Life Insurance Industry Growing

In its latest analysis of yearly premium inflows, this one covering the 2011 calendar year and released on 18 April 2012, Plan for Life Actuaries and Researchers report generally strong premium growth across almost all sectors of the industry.

On an overall basis, premium inflows increased to almost $39 billion, 7.6% over 2010 levels. This increase followed a year in which overall inflows dropped 6 percent to $36 billion, and it represents a gain of almost half a billion dollars over 2009 levels.

Of the five sectors analysed by Plan for Life, life insurance showed the most consistent and sustained growth, with premiums rising 12.3% in 2010 and another 10.4% in 2011, resulting in a total premium inflow for the year of $10.3 billion. Retirement Income and Individual Superannuation Investment followed declines in 2010 premiums with strong 2011 growth, increasing 27% to $7 billion and 18% to $10 billion respectively.

Two sectors showed results that countered the positive trend. Group Superannuation Investment fell more than 10%, declining to $10.7 billion, with only one company, Suncorp, showing an increase in Group Super inflows. In its commentary, Plan for Life notes that the Group Super category "includes a large amount of older (pre 1970) products." Ordinary (Non Superannuation) Investment fell 3.7% to $540 million. Again, only one company bucked the trend of what Plan for Life called a "relatively genteel long term decline." In this sector, CommInsure uniquely experienced a 4% increase in inflows.

For the industry as a whole, new premium sales were up some 17%, with many companies showing strong individual results.

In terms of risk business, AMP Group showed a 9.2% increase in inflows and continues to lead in market share at 16.1%, a slight decline from its 16.3% market share in 2010. AIA Australia showed the largest inflow growth, at 33.5%, an increase sufficient to increase its market share to 10.8% from 8.9% in 2010. Other leaders in market share were MLC Group, CommInsure, TAL and OnePath Australia, with shares of 14.3%, 13.2%, 12.8% and 11.7% respectively.

In the industry as a whole, several companies demonstrated inflow growth in double digits. Challenger's growth, at 85.8%, was the most dramatic among them, but AIA, at 31.2%, AMP, at 13.7% and CommInsure, at 12.9%, all showed significant growth in overall inflow rates.

Lifebroker is Australia's leading specialist life insurance broker. Helping people find the best cover that's right for them, at whatever life stage they may be. Lifebroker has access to Australia's leading life insurance companies, which allows us to source the best possible cover and price.