Annual individual risk lump sum sales in Australia rose 9.6% to AU$1.245 billion while risk income sales jumped by 21.2% to $548.7 million for the year to September 2021, according to Plan for Life.
Asked about the reasons for the rises in sales, Plan for Life says part of the reason for the growth is likely to be Covid related.
“Sales during the December 19, March 20, and June 20 quarters were low across the market before recovering. Lump sum sales in particular are only 1.6% higher than for the year ending September 2019, with company-specific growth…The other main driver.”
The actuaries and research firm also noted that while it varies a bit by company, only around 26% of ‘sales’ relates to new policies, with the remaining 74% due to Age/CPI increases.
The Market Overview notes that risk market inflows rose by 5.1% in the 12 months to September 2021 from $16.4 billion to $17.2 billion, while overall annual sales in the risk market fell by 18.5% due to reported group risk sales finishing down by more than half.
The firm says that in the individual risk lump sum market (term life, total & permanent disablement and trauma insurance) inflows were up by a relatively modest 3% while overall individual risk income inflows rose 5.9% over the past year.
