THE A.M.P. SOCIETY.

Thames Star, Volume LXV, Issue 18245, 20 July 1931, Page 2

THE A.M.P. SOCIETY.

AN HISTORICAL SKETCH. New Departure Started. GROUP INSURANCE. BENEFITS TO EMPLOYEES. The Australian Mutual Provident Society, better known as the "A.M.P.," is the oldest life office founded south of the Line. It dates from 1549, and can be fairly descibed in every respect as the first Australian life office. In life insurance it occupies a position similar to that of the Bank of New South Wales in banking, the oldest and greatest of the purely Australian banks. The A.M.P., though founded thirty-two years later than that institution, has funds only twelve millions less than the ninety-one millions sterling which the bank so modestly mentions in its published statements.

Considering the , sparsely settled country and scattered population of Australia, the huge and rapid growth of the A.M.P. is probably the world's greatest life insurance wonder. Many offices in England, much older than it, have neither such huge funds nor can show such good returns to her policy holders. On the other hand, many Canadian and American offices have grown more rapidly. Its success has been mainly due to the high rates of interest always obtainable in Australia and its consistently low expense rate. In its policy conditions it has always set a high standard. In its early and high surrender and loan values it has set an example which many offices both here and in the Northern Hemisphere could profitably emulate. Probably these two features account for its having for many years the lowest lapse and surrender rates of all Australian offices. As a result, a large percentage of its policies are maintained and become claims, the maim if not the only reason for the existence of a life office (says "Autolycus" in the New Zealand Financial Times). Some thirty years ago, the then general manager, the late Richard Teeee, the greatest life insurance man any Australian office has yet had, decided to open a branch in England. After much opposition from policy holders, he finally had his way. It still remains the only branch the A.M.P. has outside Australasia. Much to his surprise, it, for a good many years, proved practically a failure. The Englishman is very tolerant, but conservative. If you wish to secure his goodwill and business you must meet him with his own methods. This Mr Teeee had not understood. He had thought that Australian methods, backed by the magic of the A.M.P.'s name, would at once win the British insurer. During the past ten years, however, the London branch has shown very satisfactory new business figures, though not nearly as large as those in New Zealand or several of the Australian States. To meet present day conditions, the lately introduced several systems of group life insurance by which staffs can have the full benefits of all classes of ordinary branch policies by paying premiums through their firms weekly, fortnightly, or monthly. Several group schemes are now before the public, but for purely life benefits none can surpass that of this office. The A.M.P. has always recognised that, just as wine and whisky will not mix, so a life policy can be spoiled by adding foreign and extraneous benefits, e.g., hospital and accident benefits, which can better be obtained in separate policies from offices which specialise in other classes of insurance.