Reporting its financial results for the full-year ending 31 December 2015, AMP said its wealth protection business brought in earnings of $185 million, down from $188 million in the previous year.
While the company’s lapse experience was “flat” for the year, AMP did have a negative experience with income protection and lump sum claims.
Speaking to media following the release of the financial results, Mr Meller said improving AMP’s wealth protection business continues to be a long-term focus.
“Annual premium income is expected to remain subdued due to ongoing investment and management focus on business recovery,” he said.
Mr Meller said AMP is looking at three key areas in a bid to improve the business, the first being to address policy lapse rates and claims.
He said this will be done by imbedding a new claims process in income protection policies and rolling that out across its client book. Addressing lapses will involve rolling out a “targeted retention
campaign” which the company successfully trialled last year.
In addition, Mr Meller said AMP will introduce a new insurance offer which will be scaled with the company’s “goal-based face-to-face” advice model.
Mr Meller also said AMP will be looking to improve capital management by reviewing its reinsurance.
Commenting on the company’s advice network, Mr Meller said approximately two-thirds of AMP’s 3,657 advisers do not currently meet the federal government’s higher education requirements.
Mr Meller said he believes the company will be able to bring its advisers up to speed.
“We are confident that we will be able to move the two-thirds that currently don’t [meet requirements] to a position where they are in time for the introduction of the new standards,” he said.
