Life insurance faces worst conditions in decadesBY LAURA MILLAN | TUESDAY, 5 NOV 2013 12:20PMWith shareholder returns in free fall, the life insurance industry is facing its worst conditions in decades, an Ernst & Young Australia (EY) analysis of the full year banking results found. Related News |
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Judith Fiander
CHIEF EXECUTIVE OFFICER
AUSTRALIAN PHILANTHROPIC SERVICES
AUSTRALIAN PHILANTHROPIC SERVICES
When Judith Fiander first walked in the doors of Australian Philanthropic Services her intention was to volunteer for a few months. Fast forward 14 years and she is the chief executive. Eliza Bavin writes.
It is not surprising that the Life insurers are staggering under the weight of claims principally coming from the Industry super fund segment. The cost of insurance in this segment with no evidence of health being a promotion tool used against "normal" life insurance channels is not backfiring on the funds and the insurers.
Look to 40% plus rises in premiums, and also look to a decrease in thresholds for full underwriting. As well look to some of these policies carrying exclusions for disability claims for the first 2 years.
The evidence is that some of the majors have been very badly burnt by the Industry super fund deals and will now have to claw back cash or dump the cover and leave the funds to their own devices as costs exceed returns in absolute terms.