Hanover Group spawns insurance company
Hanover Group has decided to establish its own insurance company, specialising first in consumer protection following its positive experience with FAI Finance.
Tuesday, April 6th 2004, 9:49PM
General manager Steve Varney says Aldersgate Insurance has been named after a street in the City of London because the name is to indicate "establishment" - it plans to be around for a long time.
"We don’t intend to be the biggest player in the market and compete against the likes of Vero, but we don’t intend to be small," Varney says.
He is currently being supported by Hanover’s back office. But as the business grows it will take on more and more of its own identity.
"We have started as a niche player targeting consumer protection business," Varney says. "After seven years experience with FAI Finance Hanover recognised there was an opportunity to tailor make a product.
"The big players in the lending market tend to be offered big boy deals – just as FAI Finance has received. But we are prepared to give smaller lenders the opportunity to get the same sort of deals."
Varney says that will be possible because Aldersgate plans to work smarter and employ the technology knowledge of the Hanover.
He says there are a lot of small lenders working in the areas of car finance and retail finance for items like furniture and appliances.
"But we will provide insurance cover for payments for anything from less than $1000 to $50,000 for example."
Once bedded down, the company plans to look at the health insurance market, the needs of clubs and associations and possibly even coverage for the performance of loans covering property development.
Varney has been a manager in insurance for more than 20 years. He had provided advice for Hanover’s chief operating officer Dennis Kelly and when the idea to launch an insurance company came up around the Hanover boardroom table, Varney got the call.
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