TOWER Australia (TOWER) and Virgin Money have formed an alliance which will see them deliver a new life insurance product to the Australian market in 2011.
According to the two organisations, the joint venture will see Virgin Money invest its brand, innovative approach to product development, customer service and marketing expertise, while TOWER’s role will involve manufacturing the life insurance products and provision of the ongoing infrastructure to manage all policies.
TOWER’s Managing Director, Jim Minto, said the alliance was part of the company’s overall plan to ensure everyday Australians had greater access to life insurance, and also fits in with the company’s growth strategy.
“With TOWER Australia at the forefront of the Australian life insurance market and with Virgin’s brand power – I’m confident this is a winning formula,” Mr Minto said.
I see a lot of opportunity … in this sector
In announcing the alliance, Virgin Money Managing Director, Matt Baxby, referred to the Australian underinsurance dilemma: “I see a lot of opportunity … in this sector given that research shows 95% of families in Australia don’t have adequate insurance cover.”
Mr Baxby added that ensuring life insurance is accessible to more Australians will be at the core of the joint venture’s product offering, which is set to be released in early 2011.
The involvement of TOWER in this venture reflects the companies stated multi-channel strategy, which spans:
- Retail products via full advice (dealers and advisers)
- Group and Workplace solutions via industry funds, superannuation schemes, master trusts etc…
- Direct to consumer, including alliances (eg Virgin Money) and the insurer’s InsuranceLine business
