Innovative product development coupled with speed to rationalise non-performing offers has helped underpin strong growth in Australia’s direct life insurance segment.
In the 12 months to December 2013, direct life insurance sales accounted for $558.1 million, with in-force annual premiums worth $1,459.3 million for the same period. This represents significant growth over the 2013 year, as sales increased by 8.2%, and in-force premiums rose by 8.8%, according to Rice Warner’s latest Direct Life Insurance Market Report.
In comparative terms, market share for direct life insurance remained reasonably steady at 11.4% of Australia’s overall risk insurance market, compared with 11.6% at end December 2012.
“During 2013 we saw a great deal of activity amongst direct insurers, increasing the range of products and features, “ said Alastair Adamson, Head of Life Insurance Market Insights for Rice Warner.
Mr Adamson said while product development was a key industry feature, so too was the rationalisation of non-performing offers.
“Australian direct customers have access to a diverse number of risk insurance products which has helped to stimulate growth within the sector. However, direct distribution provides a challenging environment with shifting demographics, and subsequently each year we see a number of product closures,” he said.
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