Industry leaders have said Australia’s weakening economy is causing many customers to drop their policies due to financial stress.
Greg Martin, the chief actuary at ClearView, has worked in the insurance business for 30 years and told The Financial Review, “The conditions in the life industry are the worst in living memory.”
As premiums grow with age and inflation rates increase, customers are cancelling their life insurance policies to manage their finances.
The number of people cancelling their insurance hit 21% a year over the past four years at Macquarie Group, 20% at National Australia Bank, and 17% was recorded at AMP and Commonwealth Bank of Australia’s CommInsure, according to research by Plan for Life.
The news comes as Australia’s biggest wealth manager, AMP, announced it would take a $90 million profit hit this year, raising the possibility that the company might be forced to cut its dividend.
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