The pace of growth in individual risk insurance has slowed to more moderate levels, the latest DEXX&R quarterly risk survey shows.
New business in the individual lump-sum risk category firmed 3.5 per cent to $1.03 billion in the year to June, down from 2009 when growth peaked at 21.5 per cent, research house DEXX&R said in its Life Analysis report for the three months to June.
Of the top five companies, only AMP/Axa and ANZ’s OnePath increased their premiums over the year. AMP/Axa business advanced to $190 million, up 81 per cent, or 9 per cent on a like-for-like basis from $174 million a year earlier. OnePath’s total new annual premium rose 8 per cent to $145.8 million from a previous $135.2 million.
“We can’t realistically expect risk to keep growing exponentially,” DEXX&R managing director Mark Kachor said.
“We’re seeing a return to more moderate levels of growth, but the good news is sales are still growing.”
In-force lump sum business expanded by about 9 per cent, with three of the top five companies posting growth: AMP/Axa rose 76.5 per cent, or 7.6 per cent on a like-for-like basis, to $1.54 billion, OnePath increased by 12.3 per cent to $560 million and Tower Australia by about 11 per cent to $485.2 million.
Growth in new disability premiums also slowed, up 8.2 per cent to $381 million from the 22 per cent growth posted in the year to June 2009, DEXX&R said. However, disability in-force business powered ahead nearly 10 per cent to $1.73 billion.
Total risk business added nearly 9 per cent over the year to June, with in-force annual premiums at $9.24 billion, but new business edged 1.8 per cent lower to $1.94 billion, the survey showed.
New business in the group risk category fell nearly 16 per cent to $530 million in the year to 30 June, but the measure is a typically volatile one due to the timing of large premium payments by group policyholders, which are mainly industry funds.
Existing group risk business rose nearly 9 per cent to $2.97 billion as AIA Australia’s premiums climbed 14.4 per cent to $645 million and Tower Australia’s premiums shot up 30 per cent to $605.2 million.
