Shortly after posting a cash flow drop in its wealth management arm, AMP said it is focused on “fixing and strengthening” its life insurance business as well as developing a new product.
Speaking at the annual general meeting yesterday, AMP chief executive Craig Meller said the company is improving the way it manages claims and lapses.
"We are taking a significantly different and much more empathetic approach to managing claims – an approach that extends beyond paying a claim to helping people rehabilitate and recover so that they can get back to work," he said.
"We've introduced a new philosophy, processes, tools and capabilities in our income protection business and will roll these out to our lump sum business later this year."
Mr Meller added that at the start of these changes, it was advised that the claims experience would continue to be volatile.
AMP reported yesterday that its wealth management net cash flow declined by nearly 39 per cent for the first quarter to 31 March 2016.
The business was affected by claims experience losses of $18 million, with the majority of the losses being in retail income protection across both incidence and termination, the company said.
"Despite this ongoing volatility, we remain confident in our strategy and the longer-term outlook for the business," he said.
At the same time, Mr Keller announced AMP is developing a simpler insurance product that is "aligned to the goal of helping people protect themselves, their loved ones and their income".
Further, AMP will be looking to consolidate its two insurance companies, AMP Life and The National Mutual Life Association.
"Bringing the businesses together requires regulatory approvals," Mr Keller said.
"It will not impact policyholders’ terms and conditions, but should ultimately release capital to shareholders."