AMP increasing its market share in insurance
While AMP is struggling on the investment front, it is gaining market share in the insurance business in New Zealand.
Wednesday, August 20th 2003, 10:24PM
AMP says that in the six months to June 30 it has recorded a 3% increase in its gross risk sales compared to the same period last year, increasing from $7.1 million to $7.3 million. The company's share of the inforce risk market has risen from 9.6% to 10%, largely as a result of good retention rates.AMP’s share of the crisis cover market (cover for serious accidents or medical emergencies not resulting in death) increased from 5.6% to 7.6% over the first half of the year, driven by strong sales of new business and high retention.
In the term insurance area AMP has increased its market share from 11.5% to 11.9%. While the overall market grew by 0.9%, AMP grew by 4.7%, again largely as a result of good retention rates compared to competitors.
AMP had the lowest ratio of cancellations to new business (including contractual increases) of 0.35 compared to the market average of 0.76. AMP also had the lowest cancellation to inforce ratio of 2.8% compared to the market average of 7%.
The company says that in the past six months it has seen an increase in the amount of other types of cover - particularly disability and income protection insurance - sought by customers and it expects this trend to continue.
The two factors contributing to this are customer demand, and product development.
"We are seeing more people taking responsibility for ensuring the security and continuity of their income in a rapidly changing job market," it says in a statement with its interim results.
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