tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, February 22nd, 6:22PM

Insurance

rss
Latest Headlines

Southern Cross looks to advisers for help

Southern Cross wants to sell its policies through the independent adviser network.

Wednesday, November 7th 2001, 8:56PM

Southern Cross Healthcare is looking at using financial planners and brokers to sell its health insurance products from the first half of next year, chief executive Roger Bowie says.

Southern Cross will keep its in-house sales force but wants to add more distribution channels as a way of expanding the market.

"We are looking positively at a financial adviser-broker distribution channel, but with a lot of work to be done on what that means," he says.

The main issues to be ironed out are commission structures, how the market should be segmented, and what products should be sold by in-house staff and outside advisers.

Bowie says the catalyst for the move was being able to understand the workings of the broker network operated by Aetna, which it acquired last year.

The in-house sales force will be retained because it has built up strong relationships with corporate clients, he says.

"Health insurance is not always an easy product to sell. Some products lend themselves more to a relationship, and the sort of selling that financial advisers might not have time for. Equally, other products lend themselves to being fitted into a portfolio."

Bowie says Southern Cross has been mulling the idea for some time but was constrained in acting by conditions surrounding the Aetna purchase.

Initially, it was bound by a Commerce Commission ruling that it sell Aetna’s medical insurance business, and run the two organisations separately during the sales process.

However, the High Court overturned that ruling earlier this year. The commission will appeal the court’s decision later this month.

Bowie says Southern Cross has already begun approaching advisers by letter and in person to sound them out about a distribution arrangement.

So far the response has been positive, he says.

« Insurance Industry Solid After Terrorist AttacksState denies health business for sale »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Insurance Briefs

nib adds specialist skills to its board
Two new board appointments at health insurer nib add new perspectives, chairman says.

nib gets new CFO
Alvin Soh has joined nib New Zealand as its chief financial officer. Heh is a chartered accountant with more than 20 years of commercial experience in leadership roles.

AIA kicks off footie campaign
AIA NZ has launched a campaign, offering New Zealanders the opportunity to win a trip for two to see Tottenham Hotspur play in London.

AIA Vitality numbers
AIA says its Vitality programme now 50,000 members and they have recorded material health improvements, demonstrating the gains that can be made when we take charge of our wellbeing.

News Bites
Latest Comments
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News
Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com
x