tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, December 14th, 6:08PM

Insurance

rss
Latest Headlines

AMP says conventional life policies being phased out

AMP is talking down the impact a merger with AXA Asia Pacific might have on New Zealand’s insurance market, saying the phasing out of conventional life policies will keep the market share of a combined company within the regulator’s tolerance levels.

Wednesday, May 5th 2010, 6:13PM

by Paul McBeth

Having already secured approval from the Australian Consumer & Competition Commission (ACCC), AMP has applied to the Commerce Commission for approval to acquire AXA's Australian and New Zealand businesses. The ACCC shot down a rival bid by National Australia Bank last month, though the bank is looking to persuade the regulator to change its mind.

AMP's application to New Zealand's regulator said the combined market share for conventional life was the only product that was "outside the safe harbours", but this would not reduce competition because they were likely to be phased out, and customers could substitute these policies by purchasing a contemporary policy and equivalent investment product separately.

"There has been a trend away from ‘conventional' life insurance type products, known as "endowment" or "whole of life policies", which combine protection and investment in a single policy, towards protection only type policies," the application said. "Customers are tending to look for insurance policies that provide high protection for specific events (such as death or illness) at a relatively low premium but which have no investment component."

AMP's application said the merger would boost its adviser network to between 700 and 750 owned, aligned and non-aligned advisers from 400 advisers currently. That is approximately 10% of the country's network, according to Ministry of Economic Development estimates.

The insurer said competition was unlikely to be constrained with its existing competitors, including registered banks and Australasian insurers and fund managers, expected to expand their own businesses. 

 

Paul is a staff writer for Good Returns based in Wellington.

« Fidelity Life founder Gordon Watson passes awayOpinion: Newpark, Naomi and Us »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Partners exits Adviser Support Programme
Partners Life has moved its Adviser Support Programme to a third party compliance provider.

Apex Advice buys life business
Auckland-based Apex Advice has acquired a well-established insurance advice business.

Chubb's latest champion
Young maths prodigy takes out actuarial award.

New book: Unlocking group insurance
Christchurch adviser Corey Williams has released a new book helping advisers and employers put group insurance schemes in place.

News Bites
Latest Comments
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News
Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com
x