BT Financial Group considers its life insurance business an integral part of operations that is delivering good results, according to CEO Brad Cooper.

“We have a disciplined approach to how our products are distributed, with most sold through an adviser, because we believe life insurance is a complex product that needs either personal or general advice to support it,” he said.

Among parent Westpac’s customers, 4.8% hold a BT life insurance policy.

Mr Cooper says BT Life has reported 1.8% growth in market share between 2012/13 and last financial year, compared with declines among its major rivals.

Lapse rates were below the industry average of 15.1% last financial year, at 11.9%.

He says BT’s customer focus has helped it avoid claims issues experienced by other life insurance groups.

“Our strong policy framework and transparent claims management processes has further strengthened our business,” Mr Cooper said. “Our claims philosophy has consistently focused on customer wellbeing, with attention given to early intervention and rehabilitation.”

He says the next steps for life insurance are digital quoting and underwriting, new life stage products, and a digital interface with medical professionals.

BT will consider moving into group life, but only on a selective basis. Mr Cooper believes the master trust segment offers a better risk-return profile.

The business has identified $250 million of savings, but this will involve restructuring its reinsurance in this and the next financial year.