Newly-released research from Rice Warner suggests the four largest wholesale (group) insurers have consolidated their dominance of the group risk insurance market.
Rice Warner’s Wholesale Risk Insurance Report – released today – found that TAL, AIA Australia, CommInsure and MetLife have increased their collective market share from 67 per cent at June 2013 to 73 per cent at June 2014.
Rice Warner head of insurance Thierry Bareau said the findings indicate a “survival of the fittest” dynamic is becoming more prominent in the group risk market.
“The Wholesale Risk Insurance Report findings indicate that a fewer number of product manufacturers are competing in an intensive battle to deliver improved product design on less margin to a fewer number of superannuation funds,” Mr Bareau said.
The report also confirms declining profit margins despite the increasing market share.