SYDNEY: Kiwi insurer Tower Limited has secured a referral agreement for Club Marine’s Pleasure Craft Insurance customers, with the potential of adding another 15,000 risks and $8m in Gross Written Premiums to Tower’s business.
Under the agreement, Tower will offer Boat Insurance policies to Club Marine’s New Zealand customers on their renewal, as well as launching a new Boat Insurance product to the New Zealand market.
Tower CEO, Blair Turnbull, said that after the success of the Youi NZ portfolio acquisition, securing agreements like this was a fast and efficient way to accelerate customer and premium growth with minimal additional expense for the business.
“We want to deepen our customer relationships with a wider suite of products, and our new boat offering means we can help insure more things for our customers and increase loyalty,” says Turnbull.
“Last year we grew to 300,000 customers and the addition of potentially another 15,000 risks strengthens our base and will add up to a further $8m in Gross Written Premiums.
“We have a proven model to migrate customers using our 100% cloud-based tech platform, and our digital and data capability enables us to execute these growth opportunities at a lower cost than traditional customer marketing activities.
“Over the past year Youi NZ customers have been migrated to our new technology system and now have access to our award-winning products and the simplicity of our full online sales and service capability, which is why we’re achieving strong retention levels.
“The success of the Youi NZ portfolio and the recent settlement with the EQC means we’re now very well placed to find and secure these types of bolt-on growth opportunities that deliver shareholder value and help us achieve the maximum benefits from our new technology platform,” says Turnbull.
Club Marine CEO Karen Te Maipi said that the agreement was a great outcome for Kiwis, who will now have the opportunity to be taken care of by New Zealand’s only listed general insurer.
“New Zealand is surrounded by coastline and there’s a definite love affair with boats, so it’s great that these customers will have the support of a team who know New Zealand and knows how important boats are to the people who live here,” says Turnbull.
No regulatory approvals are required to proceed and under the agreement, the referral costs remain confidential. Club Marine ceased selling boat insurance in New Zealand effective 1 December.