The life insurance coverage trade has misplaced $1.eight billion after tax for the one 12 months to March 2020, pushed by poor efficiency of threat companies and a considerable collapse in funding income owing to the COVID-19 associated volatility in funding markets, in accordance with knowledge.
The Australian Prudential Regulation Authority (APRA) knowledge discovered the loss was a big discount from $759 million revenue the earlier 12 months.
The info additionally discovered that in comparison with the December 2019 quarter, the March 2020 quarter was down 798.7% by way of funding income. In comparison with the March 2019 quarter, funding income was down 88.4%.
“All risk products deteriorated with the only exception being the individual lump sum product,” APRA mentioned.
“In particular, individual disability income insurance (also known as income protection insurance) reported a substantial loss, primarily driven by loss recognition as adverse claims experience persists.”
Particular person incapacity revenue insurance coverage misplaced $1.Four billion, over the 12 months to 31 March, 2020.
Danger product web revenue after tax for the life insurance coverage trade over the 12 months to 31 March 2020