New group risk business decreased by 5.2 per cent in 2012 despite a number of companies recording an increase in excess of the market average.
DEXX&R's latest life analysis report, based on data from the 12 months to 31 December 2012, found total group risk new business decreased to $805 million.
However three of the top five companies — CommInsure, TAL and MLC — recorded an increase in excess of the market average.
CommInsure increase by 6.51 per cent, TAL was up 36.53 per cent and MLC up 54.92 per cent.
In-force group risk premiums increased by 15.7 per cent to $3.6 billion over the 12 months to December 2012, with two of the top five companies outperforming the market average.
TAL reported an increase of 23.3 per cent to $787 million and CommInsure an increase of 21.7 per cent to $533 million.
DEXX&R said that due to the timing of large premium payments by group policy holders (mainly industry funds), significant fluctuations from quarter to quarter were normal.
DEXX&R said the pattern of year-on-year growth in risk markets continued in 2012, with total new annual premiums for individual and group business increasing by 7.11 per cent to $2.5 billion in the year ending December 2012.
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TAL has launched a digital solution TAL Connect for its superannuation fund partners that links super and insurance for members, with Aware Super as its launch partner.
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