St Andrew’s Australia has been given the thumbs-up by the Australian Prudential Regulation Authority to start a new life insurance company. The Bank of Scotland subsidiary, with only seven years’ experience in the Australian market, is the first group in two years to be granted a life licence.  

St Andrew’s MD John Van Der Wielen told Sunrise Exchange News that although past market consolidation in the life sector has led to a reduction in licensed dealers, the group’s “advanced technology” sets it aside from its potential competitors. “Very few life providers in Australia have as much specialised resources, focus and experience in the area of life insurance for financial institutions.”

He says the new business, St Andrew’s Life, has received a “very favourable” reception from stakeholders.

“St Andrew’s growth in consumer credit insurance has reached a point where it is more than justifiable to open its own life insurance company to cover that component of its consumer credit range of products. With the St Andrew’s brand and global expertise, we will create significant competition in the market.”

The new life insurance company will focus initially on providing life insurance to people who take any form of finance, and expects to return a profit of more than $4.5 million this year.