Life in-force annual premium – comprising of lump sum, disability and group risk business – rose 2.2% to $16.4 billion for the year to June 30, but new annual premium declined 4.83% to $1.67 billion, research house Dexx&r says. 

Individual lump sum in-force annual premium grew 2.2% to $6.51 billion while new annual premium dropped 0.66% to $955.27 million. 

Disability in-force annual premium gained 6.04% to $$3 billion and new annual premium went up 9.63% to $436 million. 

In the June quarter disability income new business gained 23.5% to $118 million and discontinuances remain at historically low levels, Dexx&r says. 

“This trend is expected to continue as the terms and conditions offered by pre-APRA intervention products are significantly more favourable than those offered by current products,” the research house says. 

A few years ago the Australian Prudential Regulation Authority (APRA) took strong measures, including extra capital requirements, after the individual disability income product line made collective losses of $3.4 billion in the five years to 2019. The measures were designed to force the industry to improve the product’s pricing and features. 

For group risk business, in-force annual premium crept up 0.56% to $6.9 billion but new premium plunged 29% to $286 million. 

Market leader TAL extended its share of in-force premium by 5.35% to 26.7%, which equates to about $4.39 billion. AIA placed second (14.24% or $2.34 billion) followed by MLC (10.94% or $1.79 billion), Zurich/OnePath (9.36% or $1.53 billion) and Resolution Life (8.46% or $1.39 billion).