Virgin Money will enter the life insurance market in an alliance with Tower Australia.
Virgin Money managing director Matt Baxby told its new life insurance product will launch in early 2011, and is part of the company's plan to compete with the existing Australian financial and insurance markets.
"The key thing for us is that we looked across the Australian market and life insurance jumped out as a reason opportunity. That's built off a lack of insurance among Australians."
Virgin Money will lend its brand, approach to product development, customer service and marketing experience to the alliance, while Tower Australia will develop the life insurance products and provide the management.
Tower Australia is the country's fourth largest insurer, focusing mainly on the life insurance market. Latest statistics show they have 11.2% of life insurance market share.
If Virgin Money's history is any indication the Virgin Money life insurance product will be predominantly a direct to consumer play for the financial services company. While no further details were given regarding prices and product types, the Virgin brand is usually associated with lower than average fees and rates which is a good sign for consumers.
Virgin Money Life Insurance comes just a few months after Virgin launched its new headquarters in Sydney, promoting a new joint venture with Citibank to offer credit card and online banking facilities. Virgin launched a new online savings account - Virgin Saver and two new credit card products - Virgin No Annual Fee Credit Card and Virgin Flyer Credit Card.
Is Virgin Life Insurance right for you? Please fill out the the form on this page and get Virgin Life Insurance compared to other 12 major life insurance companies in Australia.
P.S. Read more about recently launched Virgin Life Insurance Competition...