Integrity Life to cease writing policies
Australian life insurer Integrity Life will cease writing new policies through its adviser and corporate group insurance channels.
In a blog post, CEO Sean McCormack states that significant challenges of the Australian life market coupled with the realities of growing a business from the ground up contributed to this decision, which was reached after the company had considered a range of options. McCormack added that the advisor channel has seen a substantial reduction in the number of financial advisers providing risk advice over the last five years.
In 2015, the Australian government announced a reform package for the life insurance advice industry, intended to better align the interests of advisers and consumers. One of the proposals, which went into effect in 2018, was reducing sales commissions. Recently, the Australian government reported that 10k financial advisers have left the industry since 2019.
Integrity Life, founded in 2018, purchased QBE Life from QBE Australia at a price of $21.7 million. The firm secured approximately $200 million through equity and debt financing, with Japan’s Daido insurance company being one of the investors. From March 2021 to June 2023, Integrity expanded its client base from 59,000 to 185,000 insured individuals.