The group risk market has recorded a 28 per cent spike in the last year, with premium rises flowing into insurer’s bottom line, Dexx&r research shows.
Group risk business grew to $4.7 billion in the year to March 2014, with the charge still being led by TAL, which has a 28 per cent market share, according to the research group.
It follows rises in group risk premiums paid by large industry funds of up to 40 per cent over the 12 month period, it said.
The increases aimed to offset higher than average TPD and salary claims.
From the insurers, TAL’s in-force group risk business grew by $494 million to $1.3 billion over the year, followed by Metlife, which jumped $244 million to $474 million, largely thanks to its Hostplus mandate, the data shows.
MLC also increased its business by 36 per cent, to grow from $312 million in March 2013 to $425 million in March this year.
Dexx&r expects the strong growth to continue, particularly following the announcement of further premium rises.
Death, TPD and trauma products recorded no growth in the 12 months to March 2014, with sales mirroring those received in the year to March 2013, at $1.3 billion.
However, Zurich, Westpac Group and AIA Australia bucked the trend, each earning significant premium increases over the period.
Zurich’s business rose 25 per cent to $58 million, followed by Westpac Group, up 16 per cent to $143 million and AIA Australia, up 14 per cent to $67 million, according to Dexx&r.
