Life insurance lump sum lapse rates have fallen to 13.9% in the 12 months ending March 31, according to new data from Dexx&r.

A year ago the lapse rate was about 15% and in March 2013 it reached an all time high of 16%.

The disability income protection lapse rate continues to fall from 14.4% at March last year to 13.9% this year.

The research house says the life industry is improving retention rates despite a period of falling sales.

Total new business sales in the 12 months to March 31 were $2.6 billion – a 2.1% decrease on the previous year’s result of $2.7 billion.

The only growth in new business was in income protection, which was up 4.7% to $488.6 million. This compared with $466 million in the previous corresponding period.

Lump sum new business was down 1.6% to 1.27 billion compared to $1.29 billion in the previous corresponding year.

Group life new business sales fell 6% during the year to March 31. New business premiums were $913 million compared with $971 million for the corresponding 2015 reporting period.