Income Protection NZ
| Quick Links |
| Knowledgebase |
Income Insurance: Insures your income in the event of you being unable to work due to sickness or accident. |
Source: Money Management: 01 Jun 2012
Overall direct life insurance sales have grown 11.3 per cent in 2011 and in-force annual premiums are up 10.9 per cent despite flat growth in credit-related insurance sales, according to Rice Warner.
Term, income protection and accident insurance business in-force premiums are up 17.4 per cent and have grown more rapidly than traditional adviser-sold and superannuation fund risk insurance in 2011, according to Richard Weatherhead, director and head of life insurance of Rice Warner.
Funeral insurance in-force premiums are also up 15.4 per cent, but credit-related insurance including mortgage and loan insurance and credit card insurance in-force premiums grew only 2.8 per cent.
Growth in credit-related risk insurance has been subdued relative to the 3.0 per cent increase in credit card debt and 7.8 per cent increase in loan and mortgage debt over the year, according to the report.
Weatherhead said a greater awareness of the risks of death and disability across Australia contributed to the growth, and product marketers were becoming smarter at understanding individual client needs and targeting offers accordingly.
"The growth of the funeral insurance segment was a surprise given that this segment has become saturated over the past few years. However, it reflects new entrants to the market and the scale of the major incumbents," he said.
The number of direct life insurance products sold in Australia increased from 109 in 2008 to 203 today, and in the past year 73 new direct insurance products have been launched and 34 have been closed. This demonstrated the high turnover and short lifecycle of some products, with many direct life insurance ventures failing to deliver anticipated business volumes, according to Rice Warner.
Many working Australians also believe the base level of cover in their superannuation is adequate, which combined with affordability means there are still significant challenges for insurers.
Money Management
| Insurance Articles |
Loss of income insurance: Case Study Rebecca is a single, self-employed graphic designer who works from home. Aged in her mid-30s, she has monthly commitments of a mortgage and... read more Insurance: The Absolute Basics Insurance, like so many things in this increasingly complex world, can be a bit of a minefield for a large proportion of people. So we thought... read more Understanding the Need for Public Liability Insurance for Businesses How to Save Up to 50% Buying Income Protection Insurance 7 Things to Think About When Comparing Car Insurance Risk Management - 8 steps To Avoid Litigation |
| Insurance News |
If insurance was free, would there still be an underinsurance problem? Regulatory compulsion propels commercial insurance Premium rates for life cover sold by advisers in decline Life insurers pay out $4 billion in 2011 Direct life insurance up but credit insurance flat NSW Insurance broker suspended |