Risk premium inflows experienced marginal decreases in the 12 months to December 2020 as the gap in consumer satisfaction grows, new research shows.
The latest data from Plan For Life showed total inflows increased 0.5% to $16.3 billion with just a 0.9% increase in inflows to individual lump sum premiums.
Only ClearView (4.6%), Zurich (4.4%), TAL (2.4%) and MLC (1.8%) recording increases in their inflows, while the remainder reported minimal or negative growth. The biggest losers were AMP (-4.4%) and AIA Australia (-1.5%).
Individual risk income premium inflows increased 1.7% over the year with ClearView recording the largest growth at 15.6%. It was followed by Zurich (4.8%), TAL (3.3%) and AIA Australia (2.9%). AMP recorded the largest outflow at 6.2%.
|Sponsored by Eaton Vance|
Eaton Vance: Active vs. Passive in EMD
Group risk premium inflows decreased 0.6% over the year as a result of the Protecting Your Super and Putting Members' Interests First legislation.
Despite this, AIA Australia recorded 27.3% growth followed by QInsure at 3.8%. BT/Westpac recorded a negative result of 96.2%.
"It should be noted that individual company growth can be significantly impacted by super fund insurance mandate movements, with BT/Asgard Super moving from Westpac to AIA, Qantas Super from MLC to MetLife, Telstra Super from TAL to MLC, EnergySuper from MLC to OnePath and AFLPA from AMP to OnePath all occurring over 2020," Plan for Life said.
The latest statistics come as Roy Morgan released its latest customer satisfaction report for risk and life insurance.
Allianz topped the list with a satisfaction rating of 87.3%, averaged over the 12 months to February 2021 followed by Medibank (81.9%), Zurich (77.6%), Westpac (74.5%), MLC Life (74.4%) and AIA (71.3%).
On the lower end of the spectrum was TAL Group at 67.2% and AMP at 54.4%.
"A customer satisfaction gap of 32.9% across the industry, from the top-rated provider of risk and life insurance, Allianz, to the bottom-rated, AMP, is actually more of a chasm than a gap," Roy Morgan chief executive Michele Levine said.
"We know how closely customer satisfaction is linked to customer retention, which makes satisfaction ratings of great importance for providers of directly held policies."
The results come from 10,000 directly held life insurance policyholders that have life insurance or various types of risk insurance income protection insurance, disability insurance, accidental death insurance, and trauma or critical injury insurance.