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16 December 2019
Individual risk lump sum new business sales dropped 16.4% to $1.02 billion in the year to September, according to research house Dexx&r.
The decline is the result of weaker sales through advice channels and the suspension or cessation of sales of direct lump sum products by many major life insurers.
Sales in the September quarter fell 29.6% to $254 million from a year earlier.
“Ongoing restructuring of large institutionally owned dealer groups has exacerbated dislocation in the advice channel, and with alternative direct channels to be banned from engaging in unsolicited calling there is little prospect of a short-term turnaround in individual risk product sales,” Dexx&r says.
Overall new sales comprising individual lump sum, disability and group risk declined 22% to $2.04 billion in the 12 months to September.
Disability business fell 7.4% to $453 million and group risk decreased 37.6% to $562 million.