AMP was awarded the Outstanding Value Insurance – Trauma Award, the same award it picked up last year. 

AMP’s Head of Technical Strategies for Retail Wealth Protection Chris Kirby said we have worked hard at getting the balance right with our trauma product range. 

“To create quality and cost effective choices, we have adopted a modular approach,” Mr Kirby said. 

“Trauma Optimum has 50 conditions for which the full sum insured is payable.  Then, based on need and affordability, the customer can choose to add 23 partial conditions, children’s cover, trauma reinstatement, buy-back and premium waver. 

“Our focus remains on ensuring existing customers’ cover remains competitive and contemporary and they receive the benefit and security of having their cover automatically enhanced without a pre-existing conditions exclusion.” 

CANSTAR’s Head of Research Chris Groth said for the second year in a row, its research showed AMP Life as offering outstanding value trauma insurance for both Standard and Optimum products. 

“The biggest trauma claims in Australia are cancer and heart attack and AMP Life excels in these areas, as well as being flexible with acceptance of new and ever-changing methods of medical diagnosis,” Mr Groth said. 

“AMP Life has kept its premium prices on trauma products low which is a measure of the strength of AMP and the life insurance industry in Australia.” 

Mr Kirby added: “AMP continues to support and invest in its two key wealth protection product lines, Flexibly Lifetime – Protection and Elevate, to ensure they offer flexibility, choice and competitiveness.”

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AMP’s Director Group Wealth Protection Rob Bergin said AMP Group Insurance builds on the strengths of the AMP and AXA stand-alone group insurance offerings and reflects a combined strong track record in helping businesses prosper and members protect their families.

“We had a look at what was working well in both operating models and are pleased to bring this new offer to the market,” Mr Bergin said.

“Group insurance plays an important role in the battle against underinsurance and AMP Group Insurance ticks all the boxes – competitive and flexible products, accessible underwriting and smooth administration and claims processing.

“AMP is now providing group insurance to more than 1.2 million Australians and in 2011 AMP paid almost $210 million in group insurance claims, giving us the scale and experience to cater for a diverse range of members.”

AMP Group Insurance has a range of enhancements and new product features available to new business, including automatic cover for new employees, under certain conditions. Mr Bergin said AMP Group Insurance offers Total and Permanent Disability cover and Salary Continuance when a non-work related illness prevents an employee from attending work on the their first day of eligibility for cover, usually the first day of work.

“AMP understands injury and illness can happen at any time. Providing cover for illness on day one will give people who are absent from work due to minor illness automatic insurance without the need for underwriting.”

This is in addition to immediate Death and Terminal Illness cover which AMP Group Insurance provides for all causes – work or non-work related health issues.

AMP Group Insurance brings together the superior features from the existing stand-alone AMP and AXA group insurance products, such as a minimum plan size of 10 and relaxing underwriting requirement for larger plans.

Mr Bergin said offering a low minimum plan size means AMP Group Insurance can fulfil the needs of small groups of employees and cater to the unique requirements of a selected group of employees within a bigger business, such as executives for which specific employee benefits need to be provided for retention or attraction purposes.

Underwriting requirements have been removed for the new AMP Group Insurance plans with more than 20 members for benefit increases of more than 30 per cent in 12 months, covering changes of employment such as receiving a salary increase or moving from part-time to full-time work. AMP Group Insurance is open now to new business.

The existing AMP and AXA-branded stand-alone group insurance products are now closed to new business. Mr Bergin added: “AMP will continue to review benefits provided to existing members on an ongoing basis to ensure their group insurance solution remains compelling and relevant. We will continue to work with advisers, brokers and research houses to deliver to the needs of our membership.”

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The AMP Planner Protection Poll found that consumer awareness of the need to protect against trauma and price sensitivity are the two primary issues impacting the uptake of trauma insurance in Australia.

When asked about specific improvements that could lead to an increase in trauma insurance uptake, 47 per cent of planners polled responded that an increase in awareness of the need for trauma insurance was crucial.

Price sensitivity is another deterrent to trauma uptake, with 43.5 per cent of respondents answering that improvements in price would be likely to increase trauma uptake amongst consumers.

When asked about product complexity, 56.5 per cent of planners did not see trauma products as too complex; however 43.5 per cent did see trauma products as too complex.

AMP’s Director Wealth Protection Products Michael Paff said many Australians remain unaware of the importance of trauma insurance.

“Many people don’t plan for worst-case scenario, they either don’t think about it, believe it won’t happen to them or they seriously underestimate the true cost associated with a serious illness or accident,” Mr Paff said.

“Sadly, personal insurance is still one of the most neglected aspects of the average person’s financial planning.

“Financial planners have a crucial role to play in educating people about the value of protecting themselves against sudden illness or injury.”

Mr Paff added: “Financial stress can be another deterrent to trauma uptake.”

“While trying to manage budgets, people sometimes see personal insurance as a cost that can be cut. While intending to reduce their financial vulnerability, they actually inadvertently increase it,” Mr Paff said.

The online AMP Planner Protection Poll was made available to financial planners across Australia and more than 170 responses were received. The poll asked two questions: “Are trauma products too expensive” and “Improvement in which of the following would most likely increase trauma uptake amongst consumers”.

Trauma cover provides a lump sum payment if a person is diagnosed with a specified ‘trauma’ condition, such as a heart attack or cancer. It is designed to help cover increased medical costs and living expenses, providing financial security during the important recovery process.

AMP Planner Protection Poll: Results at a glance

Are trauma products in Australia too complex?:

Yes – 74 (43.5 %)
No – 96 (56.5 %)
Total – 170

Improvement in which of the following would most likely increase trauma uptake amongst consumers:

Price – 74 (43.5 %)
Product features – 2 (1.2%)
Definitions – 14 (8.2%)
Awareness of the need for trauma – 80 (47.1 %)
Total – 170

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