The overarching message shared by insurer TAL at six Riskinfocus 25 events held around Australia in recent weeks has been one of a positive outlook, as the Australian life insurance sector starts growing for the first time in years.
TAL’s Chief Executive, Individual Life, Gavin Teichner, speaking during Riskinfo Australia’s Riskinfocus 25 Risk Advice CPD Tour series, referenced a range factors relating to areas such as new business sales, the number of advisers writing life insurance business, enhanced licensee support and evolving distribution models.
He told audiences the combined impact of these factors is seeing more Australians accessing risk advice.
As advice businesses increase scale and improve their operational efficiencies, Teichner reported:
- An 8.3% increase in life insurance new business sales across the sector to December 2024
- 5,600 advisers who have written at least one life insurance new business policy in the last 12 months
- A$316 million in new business sales written in the last year
- An average of A$50,000 new risk premium business written per adviser
Teichner offered a context relating to why the need to help more Australians secure a better financial future has never been greater, noting key statistics including:
- A 23% increase in household debt in recent times
- 57% of Australians have less than three months of mortgage repayments in their savings
- The impact of underinsurance is estimated to cost taxpayers A$25 billion
He also reflected on the significant opportunities that exist in the life insurance industry to support and accelerate this recent growth, noting there remains a clear need to invest in a number of critical areas to assist advisers and advice businesses, including:
- Digital capabilities that simplify advice business operations
- Safe and accessible data systems
- Comprehensive insights and data analytics
- Enhanced education and Professional Year support
To take advantage of these new risk advice growth opportunities, Teichner urged that all market participants must play their role, which includes continuing to evolve to better serve a constantly changing Australian community.
