April 24, 2018
AMP has initiated a series of pricing adjustments for its AMP Elevate product series.
The changes include a 10 per cent reduction in life insurance stepped premium rates and increases to income protection and trauma premiums.
A summary of the changes released by the insurer, which will apply to new business for its AMP Elevate series from 16 April 2018, includes:
- Life insurance stepped premium rates will reduce by 10%
- The AMP Elevate multi plan discount will increase from 5% to 10% and is available when Income Insurance is applied for with lump sum cover (other conditions apply)
- Trauma cover stepped premium rates will increase by between 4% and 13% across different ages
- Reduction of the large case discounts for Trauma policies with sums insured of $250k or more
- Blended premiums will increase by an average of 22%
- Income Insurance ordinary premium rates will increase by between 11% and 17.5% depending on waiting and benefit period combinations
- Income Insurance superannuation premium rates will now be 5% more affordable than ordinary owned policies
- The Accelerated Accident option cost for Income Protection will increase by 50% (AMP notes it is only the Accelerated Accident option that’s increasing; not the IP rates, and that this takes premiums up to what AMP indicates is market averages.)
Giving context to these pricing changes, an AMP spokesperson noted, “Broadly, this updated pricing reflects the cost of providing different types benefits to our customers with a focus on providing long term value. Whilst there are changes to the pricing of individual benefits, AMP recognises that most customers will want to hold a number of different benefits to deal with different circumstances that may arise. For this reason, AMP has increased the multi-plan discount that customers who bundle Elevate income and/or business expenses insurance plans with a life, trauma or TPD insurance plan receive. The discount applies to their life, trauma and TPD premiums.”
These April 16 changes follow AMP’s recent announcement of a premium discount initiative for healthy lives (see: AMP Offers Premium Discount to Healthy Customers).