Group market owes it to KiwiSaver

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For all the exasperation the industry felt at insurance being left out of the KiwiSaver party, it turns out that it has had a boost from the scheme.

Wednesday, September 10th 2008, 6:28AM

by Russell Hutchinson

Proof? Go back two years and some consultants were finding it hard to make a competitive fight out of a group scheme review – and more to the point, when that happens, it’s hard to justify your fee.

There were pretty much just Sovereign and Tower in the market – with the odd quote on just life cover coming in from AXA or Fidelity.

So often there were just two quotes.

Today the situation has changed, with AIG back in the market, Asteron, and sometimes ING quoting.

So you could get up to seven quotes now.

Much, much more fun.

The market may have doubled in size – in under two years – and this is at a time when everyone capable of institutional sales has been busy talking to employers about KiwiSaver.

The corporate sales sector suddenly looks like it has got potential. That’s not to say that every Tom, Dick, or Janey should be hunting corporate business.

Companies want more than a good idea and the old “what’s your middle name?” patter as you whip out the application form. They want an understanding of the tax implications, clarity around the process of application, a professional review process.

Mostly they know they can get these things from larger international brokerages.

But with the market opening up so quickly, there are bound to be opportunities.

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