Start-ups get thumbs down
Anumberof the large established life companies aren’t giving the start-up operations in New Zealand much hope of either survival or profitability.
In recent years, three companies have set-up operations in New Zealand. The most recent is Club Life, while the others are Lumley and Pinnacle.
Lumley is taking a softly, softly approach to the life market, and Pinnacle appears to have been unsuccessful.
ASB Bank managing director Ralph Norris is quite dismissive of set-up operations.
“Personally, I think you’d have to be mad to establish an insurance company in this market. People who think that there’s some pot of gold out there will be sadly disappointed,” he says.
Recent industry figures from the Investment Savings and Insurance Association show sales of regular premium business have only grown by three per cent in the year to June, but commissions have gone up by 12 per cent.
—By Philip Macalister
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