New Zealand’s Warehouse Group has moved into the online life insurance market in NZ with a web-based offering aimed at mums and dads.

Called InstantLife, the product will be underwritten by locally based Sovereign, which will also handle claims management.

Warehouse Financial Services GM Phil Devlin told insuranceNEWS.com.au the retailer has sold life insurance through its stores for about eight years, but it was a complicated process where customers took a slip to the checkout to be given forms to fill in requesting a quote.

“Now people will go online and fill out some simple questions and receive a quote almost immediately,” he said.

“We see a huge potential for life insurance [in New Zealand] and we will be tackling the simpler end of the market.”

Mr Devlin admits the company will not be insuring high-risk individuals or those wanting more than $NZ500,000 ($382,000) of cover.

“The product is tailored to our shopping demographic which is middle New Zealand,” he said. “Our shoppers have a blue tinge to their collars.”

At this stage Warehouse is only offering life insurance, although Mr Devlin says it could look at trauma and income protection later depending on the success of the online offering.

“At this stage we are focusing on a pure and simple approach,” he said.

“We think there is an education process to be undertaken to persuade New Zealanders to buy life insurance and by selling online we hope to expand the market.”

The company estimates about 75% of applications will be able to be written online.

The Warehouse Group also offers travel, pet and credit card insurance through insurers such as IAG and Allianz.