KiwiSaver Funds Under Management at June 2018Read More
Strategic Insight has released new research and analysis covering Individual Risk Market: 10 Year Review 2007 - 2017.
We have considered the latest market conditions and show the impact on market share of impending company takeovers to occur during 2018.
"The six largest Life Insurers in the Individual Risk market will expand from holding just over 74% of Inforce Premiums, to hold almost 88% of the market," said Rael Solomon, Regional Managing Director.
There are clear trends to be seen when analysing Inforce Premium market growth rates, with long-term compound annual growth rates (CAGR) falling from 8.6% over the past 10 years to 6.2% over 5 years and annual growth over the past year only 3.4%.
A clearer picture of growth in real terms can be derived by analysing changes in Life Insurer market share over the past 10 years, where there were clear winners in AIA (up 4% market share), BT/Westpac (up 3.8%), Zurich (up 3.3%, partly due to Macquarie) and TAL (up 2.1%).
Demographics of gender and smoking status show that the proportion of smokers has fallen from 12.7% to 11.0% of Inforce Premiums (the drop more marked in Males), while the proportion of Females has fallen slightly from 27.1% to 26.9% in a market dominated by the Male Non-Smoker.
Distribution by state based on Inforce Premiums, show that the market is dominated by NSW, Victoria and Queensland, holding 77% of all premiums, which has slowly but steadily grown over the past 10 years. State Market Shares have not changed greatly, although Queensland and WA have shown a clear upward trend.