Warehouse looking to sell more products

Warehouse Financial Services says sales of its life and other insurance products are on budget, though it admits the targets set for the in-store kiosks were modest.

The company, a joint venture between WestpacTrust and The Warehouse, never expected to sell large amount of insurance through the kiosks, which are located in Warehouse stores, says Warehouse general manager of financial services Keith Fox.

"We never expected the take-up from the kiosks to be high. You wouldn’t expect customers to walk into a Warehouse store and think ‘I think I’ll buy some insurance today’."

The bulk of sales have come from direct marketing approaches, he says. "This allows us to personalise the offer, including premiums that reflects the customers age, etc. That makes it easier for them to sign up and take cover."

The joint venture, set up last year, offers standard insurance products such as life cover, accidental death, travel insurance and credit card repayment insurance.

There are few underwriting questions, meaning premiums aren’t as cheap as with fully underwritten policies. However, Fox believes premiums are competitive for the type of insurance product offered.

"Given that all pre-existing conditions are accepted on some of those policies, they’re a good deal for customers who might not get insurance otherwise."

The company is considering adding two new products to its range. Though Fox declines to name them, he says like the other offerings the new products will aim to leverage off the Warehouse’s distribution network using WestpacTrust products.

The bank and retailer have been working together since 1994, when WestpacTrust began operating The Warehouse credit card.