Suncorp Life plans to double new business in the next three years by simplifying its business model and focusing on distribution through the direct market as well as through independent financial advisers.

CEO Geoff Summerhayes says the company’s new “simple, customer-focused business model” will position it to capture the “exceptional growth potential” of the life insurance market.

In targeting the independent financial advisers market, the company plans to grow its distribution reach and capability through its Asteron brand, with a focus on building relationships and product innovation, service and delivery.

“The independent financial advisers channel is very important to us,” he said in a speech at a UBS conference in Sydney last week. “We are one of the top three players… and we aspire to be the leader in that channel through the Asteron brand.

“It is also the area where we have the majority of our client base and the majority of our in-force premium at the moment, so we are very focused on growing that brand over the next three years.”

However, Mr Summerhayes sees greater potential for growth in the direct distribution market – albeit from a lower base.

“Direct is a smaller market but it is growing rapidly, so we are forecasting to get the majority of our planned percentage growth in the direct market,” he said.

Suncorp Life has already begun building a direct distribution business to the group’s customers, with new life offerings being marketed around the Suncorp, GIO and Apia brands.

“Suncorp has customer relationships with over 9 million customers… so we have been starting to experiment with that customer base by taking out simple, cost-effective online life insurance products to those customers,” Mr Summerhayes said.

“We will continue to build our presence with those brands and in time AAMI, and we will continue to expand our range of simple life insurance products tailored to the characteristics and the essence of each of those customer bases.”

The third limb of the company’s approach to drive new business will be to re-engage the group risk market.

“As an industry we have got a challenge to simplify what we do and make insurance more accessible for consumers, but if we can bridge that gap between underinsurance and simple compelling offers to people who need insurance, then that is a great outcome for the Australian community,” he said.