Disability income insurance new business sinks to 11-year low
Disability income insurance new business sinks to 11-year low
30 January 2023
Disability income insurance (DII) new business declined to an 11-year low, falling 2.6% to $388 million in the 12-month period to September, research house Dexx&r says in a new report.
Among the top-five DII providers only MLC and OnePath recorded increases, at 27.9% to $105.87 million and 4.84% to $37.24 million respectively.
The Dexx&r report comes as the Australian Prudential Regulation Authority (APRA) cautions the worst is not over for the individual DII product line despite a recent swing back to profitability.
Individual DII posted profit for five consecutive quarters from mid-2021 to September last year but the regulator says the improvements have been partially brought about by cyclical events such as favourable changes in financial markets.
The Dexx&r report also provided an update on how the overall life industry performed.
Total in-force premium increased by 3.1% to $16.3 billion led by TAL ($4.2 billion), AIA ($2.3 billion), MLC ($1.88 billion) and OnePath ($1.5 billion).
Individual lump sum in-force premium rose 1.29% to $6.45 billion and group risk business went up 4.95% to $6.96 billion.
