Direct service 'not a move away from IFAs'

AMP says the launch of its new direct offering is not a move away from advisers.

Wednesday, July 30th 2014, 2:35PM 4 Comments

After what it says was a successful pilot, it has launched AMP 360, an insurance, mortgage broking and KiwiSaver business offering advice direct to customers.

The AMP 360 team has 14 advisers based in Auckland.

There are plans to open offices in other parts of New Zealand through the rest of this year.

AMP’s general manager of direct sales Nick Scarlett said AMP 360 would complement the existing advice and sales channel.

“In 2013 we helped more than 1800 New Zealanders buy their first home through KiwiSaver and wrote $644 million in new mortgages. With the launch of AMP 360 we hope to increase that even further in 2014,” he said.

“Traditionally AMP has only sold these products through an intermediated adviser based model. AMP 360 isn’t about moving away from working with advisers. Instead it is about complementing our existing offer to customers and responding to customers demand to purchase financial products and advice through advisers, online and direct.”

AMP 360 advisers are employed directly by AMP.

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Comments from our readers

On 30 July 2014 at 8:29 pm Pragmatic said:

Sounds like direct competition to me

On 1 August 2014 at 6:20 pm Not Fooled said:

I believe this is in direct response to AMP's fading attraction to non-aligned advisers. It is exactly what it appears to be, direct advice and sales to the clients. Possibly yours and mine? It's the old tied sales force and no one is really fooled. If AMP actually improved it's products, offered a mortgage repayment cover and improved its renewals for in-force business then it would attract back a lot of lost advisers. Still this could be a positive move if they are training advisers so good marks for that initiative.

On 4 August 2014 at 11:16 pm Amused said:

I agree Not Fooled. Ask any non-aligned insurance adviser where AMP currently ranks in terms of an advice recommendation for cover to clients and I'd wager AMP is at the bottom of their list. Insurers that fail to keep pace with their competitors on products and policy wordings are unlikely to prosper much. No doubt though AMP Head Office think that a direct sales channel will be the solution to their problems. Good luck!

On 5 August 2014 at 10:54 am Dirty Harry said:

^^ What Amused said. Ask any tied AMP adviser how many customers they have moved to other carriers. It's either that or lose them to other advisers. Ask anyone else who uses decent research software, AMP is usually in the top few on price and the middle or bottom on quality. If you only want $350k of life and income cover for an under 40 Year old male non smoker class 1 or 2A then they can be competitive but that's about it. LifeTrack was old in 2008, and AMP hasn't had any new ideas since, apart from having yet another go at the direct channel.

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