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Risk inflows stay flat

Risk premium inflows experienced marginal decreases in the 12 months to September 2020, new research shows.

The latest data from Plan For Life showed inflows decrease by 0.4% with the largest falls from BT/Westpac (-20.8%) and AIA (-10.1%).

These were however, offset partially by increased inflows reported by TAL (15.7%) and ClearView (7.9%).

"With the exception of ClearView, all these results were mainly driven by changes in their respective Group Risk business," Plan For Life said.

Other insurers with relatively flat inflows were Zurich Australia up 1.8% and MLC Life who recorded a loss of 2.3%.

Despite this, annual sales in the risk market increased by 28.9% over this period. TAL recorded the largest increase (193.8%) followed by AIA (61.1%).

The other risk market insurers recorded loss in sales particularly MetLife (-44%), MLC Life (-15.9%), Zurich (-13.5%), Resolution (-11.3%) and BT/Westpac (-11.%).

Plan For Life noted TAL, AIA and MetLife contributed significantly to the overall result.

The data is in line with APRA's quarterly life insurance performance statistics which painted a bleak picture with net profit after tax down 95.6% to $18 million while total revenue down 27.4% in the September quarter.

The results are worse year on year with net profit after tax down $1.6 billion down from $220 million the previous year while total revenue plummeted 63% to $12.9 billion.

Risk products reported a $216 million loss over the quarter with a $318 million loss to individual disability income insurance partially offset by a $35.5 million net profit in group disability income insurance and $162.9 million profit in individual lump sum.

Read more: TALPlan For LifeAIAMLC LifeClearViewMetLifeZurich Australia
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