Claims, policy lapses hit AMP risk business

Announcing its third quarter results last week, AMP reported it has experienced a three per cent increase in annual in-force premiums during the third quarter, from $1,918 million in the second quarter to $1,972.

AMP said in reporting the third quarter results that the wealth protection business was “impacted by claims experience losses primarily relating to the retail income protection book".

“This negative experience has not given rise to any revised best estimate claims assumptions for the retail income protection book,” a statement from AMP said.

“Claims experience outcomes for lump-sum and group risk insurance were in line with best estimate assumptions. Lapse experience, while seasonally higher, was also in line with best estimate assumptions."

AMP added its current insurance claims improvement program continues to “track well” against expected outcomes.

“Since commencing in Q1 14 it has delivered considerable value and remains important to the long-term sustainability of the wealth protection business,” the statement said.

“Encouraging results from management actions to date include a revised claims philosophy and claims management platform."