Dealer group Plan B is not shutting down its life insurance business despite media reports to the contrary.

Plan B Group CFO Greg Haskis told insuranceNEWS.com.au the group is only relinquishing its financial services licence for Plan B Insurance Brokers.

“We are not shutting down our life insurance business,” he said.

“We operate under a number of different financial services licences and all that will happen is our advisers will transfer to another of these licences.”

Mr Haskis says this is “a paperwork exercise” to reduce the number of licences the group holds.