The global economic downturn has coincided with a huge increase in demand for life insurance, according to a survey by Australian research company Dexx&r.

Its annual report on the local life insurance industry reveals new annual premiums for total risk business jumped 31% to $1.98 billion in the year to June 30.

Total risk lines include individual lump sum, disability and group risk lump sum and salary continuation business. New business among group risk lines contributed most of the new growth, soaring 50% to $742.6 million during the period.

Among individual lines, lump sum new business climbed 22% to $916.1 million while disability business lifted 21% to $323.4 million.