Industry Analysis & Industry Trends
The industry has been adversely affected by weak demand for life insurance policies for much of the past five years, while regulatory changes have also affected performance. Weak business confidence levels and severe household spending pressures hampered demand at the start of the period. The Retail Distribution Review, which came into effect in January 2013 to ensure more transparency and fairness in the industry, is also expected to have negatively influenced demand for some products because brokers were compelled to charge customers a fee instead of earning a commission. In addition, annuity reforms that came into effect in April 2015 eroded demand for annuities. Industry revenue is comprised of both premium income and investment income... purchase to read more
Industry Report - Industry Products Chapter
The revenue generated by the Life Insurance industry comes from premium income and investment earnings. However, the product segmentation of the industry is based on premium income only, as this gives a better indication of the types of products that consumers purchase. Premium income is expected to account for 45.2% of industry revenue in 2016-17.
Life insurance can be split into term life insurance and permanent life insurance. Term life insurance only provides coverage for a specified period of time (such as five, 10 or 20 years) and a benefit is only paid out if the insured person dies during this period. Permanent life insurance on the other hand has no such time limits and pays out benefits when the insured person dies. Per.. purchase to read more