First wrap for insurance

Associated Planners has come up with what it believes is the first wrap account style system for life insurance products.

Associated Planners has come up with what it believes is the first wrap account style system for life insurance products.

The Solar risk service offers a suite of risk products sourced from a small number of manufacturers all housed in an administration system supplied by Integrated Process Solutions (IPS). From early April, Associated’s 130 planners will be able to choose term, trauma and total and permanent disability (TPD) products from AXA and Citicorp.

Associated Planners managing director Ray Miles says the service is designed to provide a more holistic financial planning service to its clients.

Miles says the risk products rolled out next month are just the first of a range of services to be housed under the Solar system. Associated plans to extend the serv-ice to include health insurance, income protection and banking products before the end of the year.

“About a year ago, we put together a wrap service for all our investment products with BT handling the administration side of the business. This new system will of the same sort of benefits for a wider range of services under a single reporting scheme,” he says.

Associated’s wrap investment service has recovered from early teething problems with the administration side of the operation and has already built up $200 million in less than a year of operation.

Solar product manager John Allmey says the system will offer discounted premi-ums on the products which already form part of Associated’s gold star recom-mended products list.

It will also allow clients to switch from one provider to another without incurring a cost, however Allmey says the service has been designed to discourage churning of clients from one product to another. The Solar system will pay advisers a level brokerage of 25 per cent.