St Andrew’s Insurance Group has formed a distribution pact with Neilson Financial Services, which it says marks a “significant milestone” in its strategy.

“The current underinsurance gap in the Australian life insurance market is a real and considerable issue that is a significant hidden cost for the ... community,” CEO Matthew Way told insuranceNEWS.com.au.

“St Andrew’s partnership with … Neilson Financial Services is designed to provide consumers with more choice and easy access to life insurance through one simple phone call, without the need for a financial planner or complex (and expensive) statements of advice.”

The life insurer has launched three products as part of its partnership with Neilson, starting with Dignity Funeral Insurance last November, Golden Life Insurance in December and Direct Cover last month. It says initial demand has exceeded expectations.

“Our immediate focus is to ensure the success of this initial suite of products through providing Australians with more choice and easy access to simple life insurance products to meet their protection needs,” Mr Way said.

He says the business is “looking to develop other new partnerships [that] bring unique and innovative customer engagement capabilities ... We are agnostic when it comes to how these arrangements are structured, providing it’s the right fit.”

St Andrew’s was acquired in 2021 by a domestic private shareholder consortium. Its largest shareholder is Farmcove Investment Holdings, the family office of former Macquarie Group senior executive Matt Lancaster. 

In 2023, St Andrew’s acquired Hallmark Insurance – formerly GE Capital’s ANZ insurance subsidiary – from Latitude Financial Services.

Mr Way says life insurance remains an essential product. “But since the major banks exited the sector, the Australian market lacks locally owned and focused providers that can prioritise the needs of Australian consumers, who simply aren’t the focus of large foreign insurers.

“It has never been harder for Australians to access simple life insurance, and we welcome the government’s initiatives as part of its Delivering Better Financial Outcomes package to allow insurers to provide simple advice to their customers. 

“Reforms of this nature are complex and there remains more work around the details of the reforms and how industry will practically implement proposed changes. However, they are a positive first step forward in giving Australians more choice, access and a better experience.”