Directors’ Report
Chairman’s address Geoff Black
Financial year 2024 at ClearView was a year of transition as transformation moved to growth and maturity. The business achieved critical key milestones and importantly, built significant momentum in sales, putting ClearView on target to achieve the FY26 goals we set last year. The Board’s confidence in the implementation of ClearView’s strategy was demonstrated in the payment of an interim dividend. Before discussing the company’s performance in more detail it is worth reflecting on the environment that ClearView and our customers across Australia have operated in throughout the period, and how we think it might play out moving forward. Clearly the higher cost of living has been the single most influential factor impacting Australians. Higher inflation has eroded the savings built up through COVID, unemployment is trending higher, and global uncertainty continues to be destablising to markets. Despite government initiatives like the recent energy bill relief rebate and tax cuts, many Australian households will continue to experience cost of living pressures for a few more years at least. All these factors make the role of life insurance and protection even more important, and the cost of insurance a key driver in decision making. ClearView policies provide benefit indexation, ensuring that benefits align with the rising cost of living. Despite this, studies show that Australians are
significantly underinsured by up to $25 billion 1 . A key aspect of our strategy over the next few years is to address this. In my previous Chairman’s address I highlighted our simplification and transformation initiatives. I am delighted to report that we are now transitioning into a growth phase. Whilst we still have some work to complete our transformation journey, we are already seeing the benefits of these changes flowing through in strong premium growth, supported by an uplift in underlying service and efficiencies. This is reflected in the improved acquisition costs per policy achieved this year. Despite Australians remaining underinsured, it is encouraging to see increasing year-on-year life insurance sales across the whole life industry. For the first time in a number of years, industry new business sales increased, up 11% for the rolling 12 months to 31 March 2024, following four years of declining sales. ClearView was well positioned to leverage this opportunity, growing market share of advised new business to 11.0% 2 (FY23 9.2%). In dollar terms, ClearView’s new business premium in FY24 was $33.7 million, up 34% on FY23. A combination of new business growth, policy indexation, and premium rate increases contributed to ClearView’s in-force premium as at 30 June 2024, increasing by 10% to $373.9 million (FY23: $339.3 million).
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ClearView Annual Report 2024
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