Integrity Life will stop selling retail life products via the advice channel from September 29 due to declining numbers of advisers.
The business has already ceased writing new life insurance policies in the corporate group insurance channel, parent company Integrity Group Holdings announced in a statement.
“This has been a very difficult decision. The board and the Integrity Leadership Team have been actively reviewing the strategic direction of Integrity Group and have considered and progressed a range of options,” Integrity Group Chairman Eric Dodd said.
“Protection of policyholders is critical and as such the board has taken the difficult decision to close to new business in the Retail Advised and Corporate Group channels.”
Integrity Life CEO Sean McCormack says the business has achieved “very strong growth” since 2021, the year he joined the business after leaving MLC Life Insurance.
However, the external environment, principally declining adviser numbers, has made it difficult for the business to achieve its goals.
“Unfortunately, the retail advised channel has seen a substantial reduction in the number of financial advisers providing risk advice over the last five years,” Mr McCormack said.
“The number of lives insured across all channels has substantially reduced and the market decline means that scale is critical.
“Achieving scale requires significant ongoing investment, and we have reached a point where it is not in either the policyholder or shareholder interests to continue to write new retail advised policies.”
Given the challenges in the retail advised channel, Integrity has also decided to cease quoting for new Corporate Group Insurance business, he says.
Mr McCormack says the decision means Integrity can “maintain our capital for the benefit and protection of existing policyholders”.
“Our commitment to claims is unchanged. We remain focused on supporting our existing policyholders and we are committed to looking after them in their time of need,” he said.
For all existing retail advised and corporate group policyholders there will be no change to their existing insurance policy terms or conditions in accordance with the relevant product disclosure documents and policy documents.
Other Integrity partnerships remain open to new business at this time, the company says.