Individual lump sum life insurance lapse rates continue to fall, with research house Dexx&r reporting a 13.6% rate in the March quarter.  

The rate peaked in March 2013 at 15.9%. It is now almost back to 2008 levels.

“The continued improvement in retention rates will have a positive impact on life company profitability,” Dexx&r MD Mark Kachor said.

Income protection lapse rates also fell, to 13.6% in the March quarter.

They peaked at 13.9% in March 2013, and the latest figure is similar to that of March 2009.

“As with lump sum business, there is now a clear trend of lower levels of discontinuances in the disability income market,” Mr Kachor said.

“The continued fall in lump sum and disability discontinuance rates during both periods of growth and flat sales indicates the industry is improving retention.”