Industry lapse rates for individual lump sum life insurance fell to 14.6% in the year to March 31 from 15.6% the previous year, according to the latest data from Dexx&r.

“There is now a clear trend to lower discontinuance rates being experienced in the individual lump sum market,” the researcher’s MD Mark Kachor said.

Lapse rates for disability income insurance also fell, to 14% from 15.1%.

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

“Based on previous cycles, we would expect this downward trend in discontinuances will continue for another two to three years.”

Dexx&r says individual lump sum new annual premium for the year was flat at $1.3 billion. 

Among the major insurers, only two recorded significant increases in this area, with MLC rising 5% to $192 million and Zurich up 7% to $62 million. 

Disability income insurance premium fell 3% to $467 million in the year.

Three of the major insurers reported an increase in new premium inflows: Westpac was up 13% to $56 million; MLC gained 2% to $78 million; and Zurich grew 34% to $22 million.

In the group life market, inforce premium increased 16% to $5.4 billion in the year to March 31, Dexx&r says.

Major insurers to record double-digit growth were AIA with a 22% rise to $1.4 billion; CommInsure up 23% to $748 million; MetLife gaining 14% to $543 million; and MLC up 21% to $513 million.