Asteron’s parent company, Suncorp Life, has announced its intention to double life insurance new business over the next three years by focusing all its resources on what it sees as two complementary distribution channels:
- The independent adviser market
- Direct insurance distribution to existing Suncorp clients
Suncorp Life Chief Executive, Geoff Summerhayes, made this prediction as the insurer unveiled a simplified business model and strategy that:
- Fundamentally shifts the focus to the customer
- Aligns resources to drive distribution
- Grows value from life insurance and superannuation
- Optimises scale in service and support
Suncorp says it will leverage and optimise the relationship it has with the nine million clients of the Suncorp Group, most of whom have some form of insurance relationship with Suncorp.
Consumer research conducted by Suncorp Life indicated that these nine million clients see little difference between general insurance and life insurance. This becomes important when the same clients said they would get their life insurance from their insurance company, who they named as general insurance Suncorp brands such as GIO, APIA and AAMI.
Suncorp Group says it holds ‘a clear advantage’ over its competitors because of:
- Its scale
- Its industry‐leading suite of insurance brands
- The fact that it has end‐to‐end control of its own manufacturing, pricing and distribution channels
“Those are advantages that our life competitors just can’t match,” said Mr Summerhayes, adding, “Despite the growth in Direct, recent regulatory change means the need for advice and independent financial advisers has never been stronger.”
Mr Summerhayes continued, “In this context, IFAs are looking to build and sustain relationships with independent life insurance specialists outside the ‘Big Four’ banks.”
“Advisers who had seen themselves as independent and had partnered with brands that are now part of the Big Four banks are looking for that natural alternative. Asteron is that alternative and we aim to do everything we can to maintain and build our relationships with IFAs,” he said.
Mr Summerhayes also took the opportunity in his video presentation to counter industry rumours that Suncorp Life was for sale, by stating the speculation “… is just plain wrong.”
