{"id":38064,"date":"2017-08-21T15:00:08","date_gmt":"2017-08-21T05:00:08","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=38064"},"modified":"2017-08-30T18:40:37","modified_gmt":"2017-08-30T08:40:37","slug":"insurers-aiming-to-define-churn","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2017\/08\/21\/insurers-aiming-to-define-churn\/","title":{"rendered":"Insurers Aiming to Define Churn"},"content":{"rendered":"

Life insurers are working with ASIC to reach an industry definition around \u2018churn\u2019 but are still dealing with it on a case by case basis, according to the heads of a major life insurer.<\/p>\n

\"AMP<\/a>
AMP CEO, Craig Meller<\/figcaption><\/figure>\n

Addressing a hearing of the Parliamentary Joint Committee Inquiry into life insurance, AMP Group Executive Insurance, Megan Beer<\/strong> said AMP was \u201c\u2026working very closely with ASIC and the rest of the industry on developing standardised reporting, so we can have more confidence as an industry on how we are looking at this\u201d.<\/p>\n

AMP Chief Executive, Craig Meller<\/strong>, appearing alongside Beer at the hearing, defined churn \u201c\u2026as where an adviser has moved a client from one policy to another with no benefit to the client but with a remuneration payment to the adviser\u201d.<\/p>\n

He added that if there was a clear appropriate benefit to the client AMP would regard the move as appropriate business that fulfilled best interest obligations under FoFA.<\/p>\n

…AMP was \u201c\u2026working very closely with ASIC and the rest of the industry on developing standardised reporting…”<\/h6>\n

Beer said AMP addressed any instances of churn as they happened and on their merits which required a consideration of each case on an individual basis.<\/p>\n

\u201cWe look at it depending on an understanding of the practice and the business model the adviser runs, the age of the book and the level of new business written,\u201d Beer said.<\/p>\n

\u201cWhen we do see lapse rates elevated above the average for a similar type of book the adviser has, \u00a0it might be 15 to 20 per cent, our first port of call is to discuss that with the adviser to understand what is happening there and if appropriate to raise it with their licensee,\u201d Beer added.<\/p>\n

Meller said AMP was aware of when churn may be taking place and had developed audit and data systems that helped identify possible instances of churn.<\/p>\n

\u201cWe can look at particular risk indicators across the portfolio and say this indicator could be of a problem and be much more focused where we apply those audits,\u201d Meller said, adding that any adviser in the AMP network found churning was terminated immediately and the behaviour reported to ASIC under AMP\u2019s breach reporting requirements.<\/p>\n","protected":false},"excerpt":{"rendered":"

Life insurers are working with ASIC to reach an industry definition around \u2018churn\u2019 but are still dealing with it on a case by case basis, according to the heads of a major life insurer.<\/p>\n","protected":false},"author":3,"featured_media":38073,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[4247],"class_list":["post-38064","post","type-post","status-publish","format-standard","has-post-thumbnail","category-uncategorized","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/38064","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=38064"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/38064\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/38073"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=38064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=38064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=38064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}