October 26, 2018
Financial advisers will no longer be able to offer AMP life insurance policies to clients after the insurer confirmed its risk book would eventually be closed to new business as a result of its sale to Resolution Life (see: AMP to Sell Life Insurance Business).
An investor presentation released by AMP to the ASX stated its wealth protection business would transition to specialist in-force management, and that new AMP customers and advisers within its advice channels “…would have access to a range of life insurance products available in the market”.
AMP confirmed with Riskinfo that the transition to specialist in-force management would result in no change to its risk product range currently on offer, but that a phased closure to new business would be introduced in Australia and New Zealand. This shift would be reflected in the Approved Product Lists of employed and aligned advisers under AMP-owned advice licensees.
…a phased closure to new business would be introduced…
The life insurer also confirmed that Resolution Life would not be releasing any of its own products into the market as its only focus was on existing AMP policy holders.
Resolution Life is a UK-based insurance and reinsurance group that specialises in purchasing legacy life insurance businesses and currently has ownership or involvement in 27 life insurance companies across the world.
Commenting on the sale agreement, Resolution Life Executive Chair, Sir Clive Cowdery said that as part of its acquisition of 27 life insurance companies “…Resolution has developed an operating model which puts delivering policyholder benefits to existing customers at the centre of our business”.
AMP also confirmed its brand would be retained on its life insurance products until at least 2020 under a brand agreement, but was likely to change after that date.