Insured Group has formed a joint venture with Priority One Rewards to provide both general and life insurance products to its members.

The company will be 51% owned by Insured Group with Priority One holding the rest of the shares in a new company called Priority One Insured.

The board of the joint venture will consist of Priority One Director Peter Stafford and Insured Directors Sam DiGiacomo and Wayne Miller.

Insured Group MD Wayne Miller told insuranceNEWS.com.au the move fits in with the company’s business of offering insurance to multi-member groups.

“We have founded the joint venture on the basis of Priority One seeing a potential profitable revenue stream providing insurance to its members,” he said. “Instead of them becoming just an authorised representative, we decided to form a joint venture.”

Consolidated Wealth Management, part of Australian Consolidated Insurance, will handle the life insurance business in the joint venture. Consolidated Wealth advisers are authorised representatives of Professional Investment Services, one of Australia’s largest financial planning dealer groups.

“Consolidated Wealth… will be the vehicle for future developments of the joint venture company,” Mr Miller said.

Publicly listed Consolidated Capital Investments (CCI) and Centurion Securities and Investment Services formed Priority One Rewards last September to offer loyalty reward and incentive marketing schemes to businesses, associations and consumers.

Last December a liquidator from PPB Advisory was appointed to CCI but resigned from the appointment during April citing conflicts of interest.

insuranceNEWS.com.au was unable to contact Priority One Rewards for comment, but it’s understood the financial problems with one of its shareholders has had no impact on the joint venture.

Mr Miller says he has no concerns about one of Priority One Rewards’ shareholders being in financial difficulties.