Media scrutiny of the life insurance scandals that have plagued Commonwealth Bank of Australia helped trigger for an explosion in insurance claims at AMP, prompting $1.3 billion of write-downs and losses by Australia's biggest listed wealth company.

The losses and the forecast of a $90 million hit to profits next year sent AMP shares tumbling 9 per cent on Friday and prompted the company to reassure its 800,000 shareholders that there would be no automatic cut to the dividend.