Major banks show biggest changes in risk

Strategic Insight revealed growth in risk inflows continued to slow, only rising by a very modest 1.8 per cent over the year ending June 2018.

However, BT/Westpac recorded the largest increase (20.4 per cent) in annual risk inflows. On the other hand, CommInsure risk business declined by 17.2 per cent over the same period.

As for the other life insurers, AIA (8.4 per cent), Zurich (3.4 per cent), TAL (2.8 per cent), OnePath (1.7 per cent) and Suncorp (1.4 per cent) reported increases, but AMP Group recorded a decline (-3.3 per cent) in risk business.

Strategic Insight also reported a 5.5 per cent rise in premium sales, however it noted that this was solely due to a 32.6 per cent jump in group risk sales.

It said group risk sales continue to be recycled among the main players via ongoing remarketing exercise, meaning actual group risk market inflows rose only 1 per cent over the year ending June 2018.

“While market leaders AIA (125.8 per cent) and BT/Westpac (66.9 per cent), along with Zurich (11.1 per cent) and AMP (7.4 per cent), reported increases in their group risk sales, those of other risk companies, including MetLife (-52.6 per cent), TAL (-34.5 per cent), MLC (-23.4 per cent) and OnePath (-15.2 per cent), were lower,” the report said.

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].