Australia's retail life insurance new business volumes for quarter 2 2025 surged 21% from last quarter to $91.1M. This represents an 11% increase on quarter 2 2024. Annual new business volumes hit a record 4 year record high of $331M, still 42% below pre Royal Commission and LIF volumes of $568M.
Source: ARdata Barometer
Growth Is Real, but Not Universal
The winners in this recovery share common traits: technology investment, strategic adviser engagement, and a deep understanding of how advice models have evolved. A combination of these factors is lifting results for agile insurers.
ClearView's underwriting overhaul—reducing requirements and clarifying thresholds—directly translated into a bounce in market share. Whilst reducing thresholds, there must still be assurance the underwriting being established today for all insurers is sustainable.
PPS Mutual continues to deepen its hold in professional niches, expanding both adviser onboarding and eligible professions. Its model—fewer clients, deeper relationships, and clear mutual value—is resonating.
New General Advice entrants are beginning to shape the market—writing their first real volumes this quarter. Many of these are newly minted practices, as confirmed by ASIC / Equifax registration data.
Technology: The Real Differentiator
Platform shifts are redefining advice workflows in ways that directly impact insurer selection. The Landscape Report reveals that risk-focused practices are 53% more likely to experiment with AI than their holistic counterparts, and the most technologically advanced practices achieve profit margins of 20% or more—nearly double those of their less tech-savvy peers.
Omnium's API-first, modular software is gaining licensee share (now 40%) by driving adviser preference through integration simplicity and the rise of alternative advice software. Risk Researcher (IRESS) and Omnium now play significant roles in the low-to-moderate risk writer segments, where process efficiency directly impacts profitability.
The adoption of technology in the industry is not just about operational efficiency, but it's also reshaping how advisers interact with insurers. The report reveals that 64% of advice practices now use digital applications beyond core CRM functions, with 41% believing AI will support SOA/ROA production. Insurers that can seamlessly integrate into these digital workflows will thrive, while those that can't risk being left behind.
Adviser Ecosystem: Smaller, Sharper, More Strategic
While adviser numbers continue their decline—from 15,540 to 15,251 advisers in 2024/25 FY—productivity and specialisation are rising dramatically. The data reveals a fascinating paradox: despite fewer advisers overall, the percentage registered to provide life insurance advice has increased from 72% in 2019 to 83% in 2024.
This isn't just about regulatory compliance. Advisers writing risk are increasingly integrating insurance within broader financial planning strategies rather than treating it as a standalone product. With 83% of advisers now having a life insurance focus but only 6% advising solely on life insurance, the collaborative models between holistic and specialist advisers are becoming more sophisticated.
The Landscape Report identifies two distinct revenue models emerging: high-volume advisers averaging $2,786 in fees per client while leveraging commission efficiency, and low-volume practitioners charging $4,721—nearly 70% more—through premium free-based approaches. Both models can succeed, but they require different insurer support strategies.
Meeting Advisers Where They Are
Insurers seeking growth must recognise that today's adviser operates in a fundamentally different environment. The report shows practices leveraging data analytics for client segmentation achieve 15% higher revenue per client and significantly improved retention rates.
Successful engagement requires:
Reducing front-end complexity through faster quoting, simplified medical rules, and intuitive digital tools that integrate with adviser tech stacks.
Supporting ecosystem integration via APIs and an open data architecture that connects CRM systems to SOA generation to insurer platforms.
Understanding the value proposition of advice is crucial for insurers seeking growth. High-quality, holistic advisers are relationship-led, time-poor, and client-trust rich. Insurers must align their product positioning and technical support with these service models to effectively engage with advisers and their clients. The correlation between adviser satisfaction and business outcomes is stark. ARdata shows that lapse rate differentials closely correlate with adviser satisfaction ratings, with top-performing insurers enjoying policy persistence rates significantly higher than poorly-rated competitors.
Managing Risk Through Strategic Partnership
Recent investment product failures (ie First Guardian and Shield Master Fund) have heightened scrutiny of adviser conduct and product governance. While somewhat isolated, these cases underscore that insurers need a deeper understanding of adviser business models-not just compliance monitoring. Strategic partnerships are key to managing risk and ensuring the industry's stability.
The path forward requires investment in adviser segmentation, real-time behavioural data, and quality-of-advice metrics. Leading insurers are already transforming compliance requirements into competitive advantages by using data to form better partnerships, price risk more accurately, and support practices delivering long-term client value.
Structural Transformation Ahead
Writing more risk is high on the radar for firms in 2025-26, with more than 700 holistic practices looking to start writing risk or writing more risk in the year ahead. The most successful insurers won't just write more policies—they'll build meaningful, technology-enabled partnerships with a reshaped adviser base that's leaner, more specialised, and increasingly central to Australian households' financial wellbeing. Those who master this transformation will define the industry's next growth phase.
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