The Life Analysis Report by DEXX&R showed Tal Life recorded the largest growth in in-force group risk business, with annual premiums rising $494 million to $1.3 billion.
This was followed by MetLife with a $244 million increase in in-force group risk business to $477 million following its appointment as group risk insurer to Hostplus.
The report indicated TAL is the largest group risk insurer with a 28 per cent market share, and AIA Australia the second largest with a 25 per cent share.
DEXX&R said group risk premiums paid by some of the largest industry funds have increased by up to 40 per cent during the past 12 months.
The research company said these increases have been implemented to offset higher than expected total permanent disablement (TPD) and continuance claims.
“These increases are now feeding through into stronger premiums inflows in the group risk market,” said the analysis report.
“With further premium increases announced, continued strong growth in in-force group premiums can be expected over the next 12 months.”
The DEXX&R report also showed a 14 per cent increase in total risk in-force business for group and individual business to 12.6 billion in the year to March 2014.
It also indicated total individual in-force business increased by eight per cent to $7.9 billion in the year to March 2014, up from $7.4 billion at March 2013.
The report showed TAL’s in-force risk business rose 36 per cent to $2.2 billion in the 12 months to March 2014, while AIA Australia’s in-force business increased 18 per cent to $1.6 billion.
TPD and trauma products did not record any growth in premiums in the 12 months to March 2014.
Total sales remained steady, however, at $1.3 billion, the same level recorded in the previous 12 months.
Sales for the March 2014 quarter were down two per cent from the previous corresponding period.
Zurich reported the largest increase with TPD and trauma product premiums rising 25 per cent to $58 million.
Zurich also recorded the biggest increase in sales for disability income business with a 30 per cent rise to $16 million.
This was followed by Westpac with a 19 per cent increase up to $50 million.
Overall sales of disability income products rose four per cent to $475 million in the year to March 2014.
