As you would be aware, the industry, including AMG Super, have had to make changes to retail insurance policies held within a super platform, resulting from legislative changes to Prudential Standard 250.
The great news is AMG Super has worked hard over the last 12 months to secure the necessary agreements and system changes to ensure advisers now have 3 flexible options available to fund insurance for their AMG Super clients.
The 3 insurance options available through AMG Super are:
Why has the APL for ‘Retail Insurance – Platform’ reduced?
As mentioned, legislative changes to Prudential Standard 250 requires all Insurer (including retail) to provide consolidated regular reporting to the super platform trustee.
Only 3 insurers in the market have responded to these changes by developing the capability to provide the required reporting to super platform Trustees. They are AIA, TAL and Zurich.
What is ‘Retail Insurance – Rollover’?
Many Insurers have established ‘Insurance Only’ super funds which only exist for the purpose of funding the client’s insurance policy. Under this strategy, the client will have a secondary super account with the Insurer which contains the client’s insurance. The client will then sign an ‘enduring rollover authority’ which will allow the Insurer to automatically request a partial rollover from AMG Super each year for the amount of the insurance premium.