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Almost $1bn wiped off risk market

Overall risk insurance market inflows declined in 2019 breaking what was a decades long history of increases, year on year they were down by 4.5%.

According to data from Plan For Life Actuaries, risk insurance inflows fell from $16.5 billion to $15.7 billion.

However, some insurers did manage to buck the trend.

TAL enjoyed inflows of 18.8%, while ClearView had the next strongest inflows in the market at 8.3%.

MetLife also had positive inflows at 5.8%.

However, the inflows for some insurers were offset by a bad year for many.

AIA recorded negative risk inflows of 29%, AMP was down 7.8%, MLC was down 4.3%, BT/Westpac recorded negative inflows of 4% and Zurich lost 3.5%.

Total sales of new risk premiums were similarly down, with Plan For Life observing a 3.9% drop.

Again, TAL was the best performer in this area. TAL had a 202.1% increase in sales of new risk premiums.

MLC gained 7.3% in risk sales. It was the only insurer other than TAL to have an increase.

Plan For Life noted that all of the other participants in the risk market were down and particularly AMP, which is no longer writing new insurance policies, was down 77.5%.

Meanwhile, BT/Westpac was down 60.4% and AIA was down 39.2%.

Reflecting its strong performance, TAL's overall market share has increased. It now represents 28.6% of the market as opposed to 23% a year ago.

AIA, on the other hand, lost market share. It fell from 23.6% in 2018 to 17.5% of the risk market in 2019.

Read more: TALAIAMLCClearViewMetLifeZurich
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