Risk market goes backwards as super laws bite

Plan for Life risk statistics for December 2019 showed that total risk market inflows were down 4.2 per cent last year, declining from $16.4 billion to $15.7 billion. Inflows into the lump sum market fell 1.4 per cent across the board, with what the research firm described as “mixed company level results”.

Both ClearView and MLC reported positive growth of 5.2 per cent and 2.5 per cent respectively in the lump sum submarket. TAL also recorded 0.5 per cent growth in this category, while all other insurers reported negative growth.

Risk income inflows grew slightly by 0.3 per cent across the industry, with ClearView again leading the market with 15.1 per cent growth, and MLC and Zurich also recording positive growth of 4.8 per cent and 2 per cent respectively. Similarly to the lump sum category, TAL recorded 0.5 per cent growth in income inflows, while the majority of other insurers went backwards.

Group risk premium inflows fell 9.3 per cent as a result of the government’s Protecting Your Super legislation which came into force in July 2019, although a number of insurers recorded positive growth due to incoming super fund mandates. TAL saw 39.5 per cent positive growth in this category while MetLife recorded 6.1 per cent.