Research house Dexx&r has released its 10-year projections for individual and group risk markets to December 2030.

It estimates total disability income in-force will increase by an average annual growth rate of 2.1% to $7 billion from $5.7 billion as at December last year.

Total term life & trauma in-force is projected to grow by an average 1.1% annually to $14.7 billion from $13.2 billion at December 2020.

Dexx&r says subdued growth in new business is expected over the next three years. Factors behind the weaker growth include reduced number of life companies promoting risk products following the exit of AMP and retail banks from the business.

Distribution disruption following the change in ownership of several large bank-owned dealer groups is also a factor, Dexx&r said.

Group lump sum in-force is forecast to accelerate at an average annual growth rate of 5.4% to $8.3 billion by December 2030 from $4.9 billion last year.

Dexx&r says the impact of the opt-in requirements for members under age 25 and on inactive accounts is expected to be offset by premium increases charged to remaining insured members in the above 25-age group.