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AMP Life Announces Closing Date for New Business

AMP Life has confirmed the closing date for new business into its AMP Elevate range but has indicated it will continue to accept new applications from advice clients who pay premiums via one of AMP’s platforms.

In a note sent to advisers, AMP stated that from 31 January, 2019 it would no longer accept applications from new customers into the standalone version of AMP Elevate but would do so for new applications paid via North, Summit, Generation or iAccess.

AMP did not indicate how long the latter arrangement would continue, stating it was considering alternative insurance option for customers using platforms and advisers would be updated when any further decisions were made.

Existing Elevate policyholders will be unaffected by the changes and can apply for new business after 31 January, and will also be able to increase their level of cover, add new types of cover, convert cover between ordinary and superannuation, reinstate policies and change benefit types after that date.

AMP also indicated that terms and conditions, including medical definitions, would be updated regularly, and adviser commissions would also be unaffected and paid in the same way.

AMP first flagged the closure to new business when it announced the sale of its life and mature business to Resolution Life in October 2019 (see: AMP Will Close to New Risk Business Following Sale).

At the time of the sale, AMP told riskinfo it would introduce a phased closure to new business in Australia and New Zealand which would be reflected in the Approved Product Lists of AMP-owned advice licensees.

The most recent note sent to advisers stated the transaction with Resolution Life was likely to completed by the second half of 2019 and the life insurance teams within AMP were expected to remain with the life business once it transferred to ownership under Resolution Life.