Youi aims to shake up the New Zealand personal lines market with a $60 million investment in the country after obtaining its operating licence last week.

“We’re the new insurer on the block with a credible history in Australia, and we’re hoping to duplicate that success story… in New Zealand,” spokesman Trevor Devitt told insuranceNEWS.com.au.

The South African-owned group is advertising for sales staff, and a new promotional campaign was launched yesterday to raise awareness of the brand in New Zealand.

In May Youi’s board approved turning the New Zealand call centre into a full insurance operation, Mr Devitt says. The company intends to expand its headcount there to 420 from 280 by April next year.

The company will now write car, home and contents, caravan and trailer insurance.

“New Zealand represents a great opportunity for Youi, where we can combine our successful operating model and approach to serve Kiwis with better-value insurance and a better experience,” CEO Danie Matthee said.

Youi NZ is owned by Australia-based Youi Holdings, which is controlled by South Africa’s OUTsurance Holdings. The overall parent is Rand Merchant Insurance Holdings.

Three call centres in South Africa, New Zealand and on the Sunshine Coast serve the Australian market under a “follow-the-sun operation, which gives them the ability to help customers on a near 24-hour basis”, Mr Mathee said. “We have a strong focus on speaking to a real person.”

Mr Matthee says the three call centres have “assisted us with strong growth in the Australian market due to extended operating hours and increased customer satisfaction. This has provided us with… confidence that we can offer New Zealanders the same service offering.”

AM Best has awarded a financial strength rating of B++ and an issuer credit rating of bbb to Youi NZ, with a stable outlook.

The ratings agency says positive ratings factors are partially offset by Youi’s “lack of operating history in the New Zealand market and the challenges in executing its business plan amid heavy competition from established insurers within the region”.