The long-term insurance industry attracted R50,2-billion in new individual life business in 2006.
According to the Life Offices' Association (LOA), this translated into a 14 percent increase over the R44,2-billion received in 2005.
Commenting on the 2006 sales statistics released this week for the long-term insurance industry, LOA chief executive Gerhard Joubert said the increase in new business was heartening.
The life industry had been trying to regain consumer confidence by placing a much greater focus on the needs of the consumer, he said.
Joubert said total income for the life industry escalated by 23 percent to R201,9-billion in 2006 compared with the R163,6-billion received in 2005.
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Total income consisted of existing premium income for both individual business and group schemes as well as investment income.
Joubert explained that the R50,2-billion new individual business was made up of recurring and single premiums.
Individual business consists of life, disability, dread disease and income protection policies, as well as endowments, retirement annuity funds, living annuities and compulsory annuities.
He said that looking at the five year picture, life companies had recorded a steadily increasing flow of new individual recurring premium business - from R7,3-billion in 2002 to R9,5-billion in 2006.
In addition, new individual single premium business received by life companies in 2006 was the highest in five years.
In recent years new single premiums had started to lag, but in 2006 the industry saw new inflows of R40,7-billion.
This is the highest inflow recorded since 2002 when new single premium business amounted to R36,7-billion. - Sapa
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This article was originally published on page 0 of Cape Argus on October 15, 2007
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