New data has revealed the degree to which the growth in group life insurance premium inflows has been impacted by the Government’s policy measures such as Protecting Your Super (PYS).
The latest data from specialist life/risk ratings house Dexx&r revealed that the in-force group business had declined by 12.6% in the year to June 2020.
“Total in-force group risk premium decreased by 12.6% from $6.8 billion at June 2019 to $6 billion over the 12 months to June 2020,” it said. “Premium rates for members cover have been increasing over the past three years however these increases have not offset the decline in total premiums attributable to the PYS opt-in requirements.”
“Over the 12 months ending June 2020 two of the top five companies in the group market recorded an increase in in-force group premiums,” the Dexx&r analysis said. “TAL’s in-force business increased by 26.5% to $2.3 billion and MetLife increased by 2.9% to $812 million.”
“TAL’s large increase in in-force business over the 12 months to June 2020 is largely due to inflows following the transfer of REST Super’s group insurance mandate previously with AIA Australia.”
The Dexx&r analysis revealed that Australia’s five largest players were TAL/Asteron (28%), AIA/CommInsure (18%), Zurich/OnePath (15.2%), AMP (10.3%), MLC Life (10.2%).
It found that in the group environment it was TAL (38.22%), AIA (15.54%), Metlife (13.58%), QInsure (9.27%) MLC (6.8%).