The business will provide life insurance policies that will be sold through Money Managers branches.
Managing director Kevin Brailey says Orange won’t be putting its products into the independent financial planning network.
The products Orange is offering will be competitively priced, however the commission structures won’t be as high as other products sold by financial advisers.
He says all the commissions will be paid on “as earned” basis monthly. There will be no write backs or problems with lapses.
Orange’s products have each been designed with a unique selling point. For instance the life cover has a special tertiary education benefit. Its business insurance policy, which is basically a trauma policy, covers a company’s contractual obligations.
There is a policy for older people which gives automatic cover with no questions asked. Its unique selling point besides making a pay out on claim, it also makes a payment of 10% of this amount to a charity.
Money Managers has for years made a point of saying it does not sell insurance. However it has changed its mind as there is a demand for life products from its client base. Also it is a way of adding more value to the Money Manager franchises, and may attract more people to the organisation.
Brailey says clients have a need for insurance products, and he thinks that the investment and insurance side of the industry need to get closer together.
Brailey says one of the key elements of the business is the insurance profile tool that has been developed. He says business won’t be written unless the profile tool has been completed.
“I don’t think you could get a more compliant process,” he says.
Orange Insurance is using Hannover Re in Sydney as its reinsurer. It is also outsourcing all its claims management to this firm.
In the health area it is using an AIA product which will be badged to Orange. The company’s actuary is Peter Davies.
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