The below is AMP's response to consumer group Choice's annual 'Shonky' Awards.
It can be difficult to draw accurate comparisons and conclusions in relation to inactive accounts due to the varied characteristics of products within trusts and across superannuation providers.
For example: a large proportion of the AMP accounts classified in APRA’s data as inactive receive a capital guarantee. It is often in members’ best interests to maintain these accounts given the future benefit they will provide.
AMP supports legislative measures that identify and aim to reduce duplicate or inactive accounts.
In 2018, we helped more than 85,000 AMP members identify duplicate accounts, with many of these members choosing to consolidate multiple superannuation funds where it was in their best interest to do so. This work to reduce duplicate or unused accounts is continuing.
AMP is also undertaking a major project to simplify our superannuation business and offers, which is being overseen by the trustee board in accordance with legal and regulatory obligations, and in consideration of members’ best interests.
In 2018, we cut fees by an average of 25 per cent for our MySuper funds to improve their competitiveness and customer outcomes. AMP’s default MySuper lifecycle funds are meeting all of their stated objectives over five years.
AMP Life has one of the highest claims acceptance rates in the industry and pays, on average, more than 95 per cent of all claims. In 2018, we paid $1.21bn in Australian insurance claims. AMP continues to invest in improving its claims handling generally, particularly around time to decision for customers.