Life insurance inforce premium grew 12% to $12.2 billion last year, with group life recording a 20% increase to $4.35 billion.

TAL overtook AMP/Axa to become the market leader, with 15.39% share against AMP’s 14.77%. MLC was in third spot.

Total new annual premium grew 13% to $2.89 billion, according to figures published by research house Dexx&r.

Individual inforce premium increased 8% to $7.9 billion.

Dexx&r says group premiums for some of the largest industry funds have risen by up to 40% in the past year to offset higher-than-expected total and permanent disability and salary continuance claims.

The increases are feeding into premium inflows and the strong growth is expected to continue.

AIA is the largest group life insurer, with 25% of the market, followed by TAL on 24%.

Sales of individual death, total and permanent disability and trauma products were up 2% to $1.3 billion last year. Sales of disability income products grew 4% to $473 million.