Discontinuance rates in individual lump sum life insurance have continued to fall, dropping to 13.8% in the year to last September 30, according to Dexx&r.

The research house says the rates move in four-to-five-year cycles and peaked in September 2013 at 15.2%. They have now fallen for eight consecutive quarters.

Income protection discontinuance rates fell to 13.6% in the year to September 30 from 14.5% the previous year.

Dexx&r says there is now a clear trend of falling rates and it expects this to continue for the next two or three years.

Life insurance inforce annual premium for the year to September 30 was up 7.44% to $14.3 billion. The strongest growth was in group life, up 9.55% to $5.6 billion.

Overall new annual premium dropped 22.3% for the year to $2.4 billion. Group life experienced the biggest fall, down 48.5% to $717 million.