Currently Arrow are tapping advisers on the shoulder asking them to become shareholders by stumping up with $50,000 each.
To get off the ground Arrow needs to sign up 63 advisers. Millar says the company is being formed as there has been a significant decrease in the number of life companies in New Zealand over the past decade, and independent advisers need more choice.
Also the banks have become major players in the life insurance area and tend to want to deal through their own distribution rather than independent financial advisers.
Millar says Arrow differs from other new players, such as Club Life, by being 100%-adviser owned. (Club Life has institutional investor Hellabys as its cornerstone shareholder and it is currently looking for new capital from institutions).
He says the 100% ownership gives advisers influence over the products and services delivered, plus it removes the likelihood that the business will be sold like so many life insurance companies before.
Arrow Life’s chief executive is Paul Bell, who was formerly the general manager retail at Westpac. Advisers involved in the business are Peter Chote from Cameron Chote Financial Services in Wellington and Nelson-based Alan Bradnock of Six Step Financial Services.
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