Disability insurance is continuing to prove problematic for Australia’s major insurance companies, according to the latest data released by the Australian Prudential Regulation Authority (APRA).
APRA’s June quarter Life Insurance Performance statistics have pointed to a life insurance sector which had mostly recovered from the challenges of 2013/14, but which was still struggling to deal with disability products.
The APRA data revealed that net profit after tax for risk products was $300 million in the June quarter, with individual lump sum risk contributing $333 million and group lump sum risk contributing $164 million.
But notably, the data showed that individual disability income insurance contributed minus $167 million, while group disability income insurance contributed minus $31 million.
In the year ending June 2016, net profit after tax was $1.4 billion, with individual lump sum risk contributing $1.3 billion, individual disability income insurance contributing minus $381 million, group lump sum risk contributing $468 million and group disability income insurance contributing minus $24 million.
Source: Money Management
