- AMP Life Business Stable Despite $18 Million Claims Hit;
- Advice Software Providers Rolls Out Online Opt-In
AMP Life Business Stable Despite $18 Million Claims Hit
The life insurance business of AMP Limited has been hit with an $18 million loss related to negative claims experience but has stated it would not alter its assumptions about the business going forward.
The announcement was made as AMP Limited reported its cashflow and assets under management for the first quarter to 31 March 2016 with its wealth protection business only suffering a 1 percent decline in annual premium in-force (API).
This figure was $1,943 million in the March quarter of 2016 compared to $1,958 million in December quarter of 2015 with the small decline driven by in API for individual lump sum and individual income protection.
AMP stated the claims experience loss of $18 million mainly occurred in retail income protection across both incidence and termination policies and would continue to be monitored but “…it has not caused us to alter our best estimate assumptions at the present time”.
The insurer stated that it had previously mentioned that volatility in Australian wealth protection was to be to be expected from period to period and that “during remediation of the Australian wealth protection business, this volatility may at times be amplified”.
AMP also stated that its ongoing insurance claims improvement program would deliver better outcomes while broader market re-pricing on insurance would provide flexibility to adjust prices upward if required. At the same time, AMP was well progressed with plans to legally consolidate its two life insurance businesses which would reduce costs in that part of its business.
Advice Software Providers Roll Out Online Opt-In
Two financial services technology providers will allow the clients of financial advisers to receive advice or opt-in to advice electronically after the rollout of a new system.
The capability will be offered via Midwinter’s financial planning software, AdviceOS, in conjunction with SuiteBox, with advisers able to carry out online meetings, share screens with clients and have them sign electronic documents, with the meeting recorded for compliance purposes.
While AdviceOS would hold any advice documents, including the Opt-In documents, SuiteBox would provide the capability to sign documents electronically within a video meeting where a client has consented to the information being provided electronically. AdviceOS would then save the signed document back to Client Records with the Opt-In meeting information, including a video of the clients signing, and all other related information accessible for any subsequent reference within AdviceOS.
