A new insurer is to enter the New Zealand motor market, saying it wants to deliver “something pure and Kiwi”.

Auckland-based Provident Insurance has been licensed by the Reserve Bank of New Zealand to write automotive owner protection.

It expects to be writing business by the middle of next month, according to CEO Steve Owens.

“We felt the timing was right for another credible competitor, with just two major providers [Autosure and Protecta] competing in the retail auto sector in New Zealand,” he told insuranceNEWS.com.au.

“The fact we are a 100% New Zealand-owned and operated business provides something pure and Kiwi that has attracted the support of some of [the country’s] leading motor vehicle retailers.”

He says answering to a local board, rather than international directors, will make the company more responsive to market and client needs.

Provident will offer mechanical breakdown, credit contract indemnity and loan equity insurance, and will distribute motor vehicle cover under an agency agreement with Lumley Insurance.

Mr Owens co-founded the company with fellow motor finance and insurance specialist John Copson.

Its financial strength is rated B++ by AM Best.