AMP plays catch up

In an attempt to "catch-up" with competitors who have already moved to modular products, AMP has launched Lifetrack.

Like other modular products, Lifetrack allows customers to have one policy but to pick and choose what cover they want.

This approach "seems to be the way market is going", AMP manager risk products Jo Greening says.

And in an effort to regain the initiative from rivals, AMP has aggressively cut its prices.

"For term product over $300,000 we’ve dropped the price considerably," Greening says.

"We aimed to be in the top three for pricing and we’ve achieved that."

As well as reducing documentation, the modular approach makes it easier for customers to adjust their policies as their needs change.

Cover available under Lifetrack includes death, disablement, crisis and income protection. Also offered is a home loan protection product that includes some cover for redundancy.

The new product was launched to advisers and brokers in August, and is now being sold to clients, Greening says.

"The initial response has been pretty good. The product was rated highly by (Australian research house) PlanTech Consulting."

Greening says to a certain extent AMP has been playing "catch up" with competitors, may of whom had already introduced a modular life product.

However, the company had been working on its offering for some time.

The target market is 35-55 year-olds wanting cover of more than $300,000.

"This is where we are most competitive," Greening says.

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