Aussie optimism cruels life sales trends
ING Australia’s life insurance sales were up 25% in the first quarter of 2009 compared with a year earlier, but the company says underinsurance remains a cyclical long-term problem for Australia.
The company says the jump reflects people’s increasing concern about the economy.
Head of Products, Marketing and Reinsurance for ING Australia’s Life Risk division, Gerard Kerr, says the increase is pleasing but unlikely to be sustained as economic conditions improve.
He says that in good times, when the sales growth figure is more like 10-12% a year, people tend to self-insure.
Research undertaken by ING found 41% of Australians would sell their primary place of residence if the main income-earner was unable to work or died.
“Perhaps there’s a change in the market mindset where it is incredibly difficult to sell property now, it’s incredibly difficult to realise some of your investments and you see the value of these decrease,” Mr Kerr told insuranceNEWS.com.au.
The company says the jump reflects people’s increasing concern about the economy.
Head of Products, Marketing and Reinsurance for ING Australia’s Life Risk division, Gerard Kerr, says the increase is pleasing but unlikely to be sustained as economic conditions improve.
He says that in good times, when the sales growth figure is more like 10-12% a year, people tend to self-insure.
Research undertaken by ING found 41% of Australians would sell their primary place of residence if the main income-earner was unable to work or died.
“Perhaps there’s a change in the market mindset where it is incredibly difficult to sell property now, it’s incredibly difficult to realise some of your investments and you see the value of these decrease,” Mr Kerr told insuranceNEWS.com.au.