The overall sales of direct life insurance plans has increased by 11.3% in the year 2012 and in force premiums have also increased by 10.9%. However; Rice Warner states that there has been a flat growth in credit related insurance sales.
Richard Weatherhead is the director of life insurance in Rice Warner and according to Richard Weatherhead:
• Term insurance, income protection insurance and accident insurance business in force premiums have increased by 17.4% and the growth has been much quicker than traditional superannuation fund risk and traditional advisor sold insurance in the year 2011.
• The in force premiums for funeral insurance have also increased significantly by a 15.4% as compared to insurance related to credit, such as loan insurance, mortgage insurance and credit card insurance. The in force premiums for credit related insurance has only increased by 2.8%.
• The growth in credit related risk insurance has become reduced as compared to the 3.0% increased in credit card debt and 7.8% increase in the mortgage and loan debt over that particular financial year. These statistics are according to the report and data collected.
• Weatherhead stated that an increased concern of certain risks such as but are not limited to death and disability across Australia contributed to the overall growth. In addition products marketers are quickly becoming smarter; they understand the needs of each client and are providing targeting offers to suit these needs.
• The total number of direct life insurance services and products sold in the nation has significantly grown from 109 in 2008 and 203 today.
• Many Australians who work on a full time basis also believe that the basic cover level in their superannuation is enough for them and when this is combined with cost effectiveness it implies that there are still many hurdles and challenges for the insurers in Australia.