New research from actuary Plan For Life has found that overall group risk premium inflows fell 15% over the 12 months to June, with fresh legislation to blame.
This includes the 'Protecting Your Super' legislation, which came into effect on 1 July 2019 (to protect super savings from unnecessary erosion by fees and insurance costs) and the 'Putting Member's Interests First' legislation, which came into effect on April 1 earlier this year (to ensure members aren't paying insurance fees for cover they don't need or want).
TAL was the only company that managed to record some growth during the year (25.7%), aided by Rest switching its insurance mandate from AIA to TAL.
In comparison, AIA's inflows fell 47.4% during the year, while MetLife Insurance, MLC Life Insurance, QInsure, Zurich Group and BT/Westpac Group fell 12.2%, 27.5%, 8.9%, 25.9%, and 15.8% respectively.
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The Rest mandate saw TAL's market share increase to 38.6% (compared to 26.1% in the year ending June 2019), while AIA's market share dropped from 31.5% to 19.5%.
Meantime, inflows into the lump sum sub-market fell 0.7% during the year, with mixed results at a company level.
ClearView (3.9%), Zurich Group (2.4%), MLC (1.7%) and TAL (1.5%) all reported positive increases in inflows during the year, while AIA (-4.3%), AMP (-4.9%) and BT/Westpac (-3.2%) all experienced negative growth.
In contrast, the risk income market reported marginal growth over the past year, up 0.3%.
ClearView outperformed its peers in terms of risk income inflows, growing 14.2% during the year to June 2020.
Other notable performers were TAL (2.4%), MLC (2%) and Zurich Group (1.6%). The other major insurance companies all experienced negative flows in risk income premiums.
The statistics cover funds that flow through life insurance companies' statutory funds, Plan For Life said, and excludes funds that flow through unit trusts and master funds.
Plan For Life analyses the life insurance industry using the statistic "premium inflows", which covers in force premiums as the end of the reporting period as well as single premiums.
This allows life insurance companies to be assessed in a similar fashion to fund managers, it said, in terms of "new inflows".