No Broad Changes for MLC Life Under New Owners

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MLC Life Insurance will not make broad changes to products or services for at least two years according to its Chief Executive, David Hackett who stated the insurer’s initial focus will be on back-end systems and technology.

MLC Life, CEO, David Hackett
MLC Life, CEO, David Hackett

Speaking to riskinfo, Hackett said MLC Life Insurance was currently moving its technology over from NAB and cleaning up its legacy products while also looking at improvements to policy and claims administration systems.

“As we wean ourselves off NAB technology we will build our own administration platforms which should make us more innovative in the future. We have capital to invest in those platforms and will do so as we continue on our growth journey,” Hackett said.

“We are happy with our on-sale products and will continue to ensure they remain competitive in the areas of features and pricing and with the investment in technology we believe we will be able to improve the affordability of insurance in Australia,” he added.

Hackett said while MLC Life Insurance would retain products, branding and staff it would promote the change of ownership and that Nippon Life is a mutual insurer focused on the quality of its products and its policy holders.

“While Nippon Life is the leading retail insurance provider in Japan and ranked eighth in the world, we also plan to be the leading and most trusted life insurer in Australia,” Hackett said.

“Being a mutual we have received strong, early support from the non-aligned advice market who well remember the days of mutual insurers and we have an owner who has that structure and will make something of this fact in the market.”

His comments came as Nippon Life formally took over 80% of MLC Life Insurance from NAB after a deal, worth $2.4 billion, announced a year ago reached its completion on October 1.

The deal, first announced in October 2015, will see NAB retain 20% of the MLC Limited – which operates the MLC Life Insurance business, as well as the MLC name and enter into a 20-year distribution arrangement with Nippon Life to provide life insurance products through NAB’s owned and aligned distribution networks

The MLC brand, which is also used by NAB for advice, paltforms, investments and superannuation, will also remain in the Australian market for a period of up to 10 years with Nippon Life stating it recognised the strength and value of the brand and will use it under license for that period.

The acquisition has resulted in the appointment of a new board from 1 October for MLC Life which will be chaired by independent director and former diplomat Peter Grey, who will be joined by independent non-executive director and former IAG Chief Executive, Andy Cornish.

Also joining the board as non-executive directors is Director and Managing Executive Officer of Nippon Life Insurance Company in Japan Hiroyuki Nishi and Executive Officer of Nippon Life Insurance Company, Toshihiro Nakashima.

The new appointments will join Hackett, former PWC Senior partner Sandra Birkensleigh and Chief Customer Officer, Consumer Banking and Wealth Management at NAB, Andrew Hagger. Birkensleigh and Hagger will be non-executive directors.



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