I just love it when the people speak:  the following letter was sent to me by a subscriber in response to a renewal notice for life insurance from AMP. I think it’s a classic.

Dear Sir,

I refer to a letter recently received from AMP dated January 2016 regarding my new insurance premium to take effect from March 2016. I have three points to make with respect to my position and the information contained in that letter.

1  I am keen to reach retirement as soon as possible and in order to do that I am reducing all of my debts quickly and keeping a close watch on my expenses. I would like AMP to support me in this regard.

2  One of the reasons provided in AMP’s letter for increasing my premium is inflation, which, as explained, is linked to the CPI. Neither the current CPI or Inflation Rate in Australia is 5% or 3% as used in calculating the new cover I require. The following link provides ABS information regarding 2015 CPI and even if the highest figure quoted were to be used it is only 2%.

I also note that a portion of the CPI is attributed to the rising cost of tobacco. It should be clear from my policy that I am not a smoker so the likely CPI figure for me would be less than 2%. It seems unusual to me that this information is easily accessible to AMP but appears not to have been used??  Please recalculate the increase to my premium using the figure of 2% for inflation.

3  Included with the AMP letter was a glossy second letter from Mark Broom at AMP Customer Solutions. This letter was thanking me and providing an adult double movie pass to Hoyts Cinemas. I appreciate Mark’s attempt at being generous but unless Hoyts are giving these passes away to AMP I can only assume that they are being provided from profits made from customers like me.

An adult movie ticket can be purchased for any amount between $13 and $22 depending on how you purchase. I wish to return this double movie pass and have a minimum further $26 deducted (or the same amount the passes cost AMP) from the insurance premium quoted.

Furthermore I would add that I am disappointed with this strategy and, like many other companies and individuals, would love to see AMP display the strategy of keeping business costs and costs charged to customers at the lowest level reasonable. This offer does not demonstrate that this is happening.

Well said!