Wealthpoint has introduced the launch of the standalone General Insurance brokerage. Wealthpoint CEO Simon Manning has said that Wealthpoint General Insurance was formed to support advisers expand general insurance services as well as expanding supplier members with a focus on growing commercial, property and liability business lines. Wealthpoint General Insurance is based on the longstanding relationship with Vero and AMP General as well as new arrangements with Delta and Star Insurance. Manning has said that the dealer group has been considering this for a while as general insurance has always been a significant part of business for members. Creating a standalone brokerage means that Wealthpoint can form a working relationship with larger insurers under the IAG brand. Wealthpoint has partnered with Steadfast to form the new brokerage.
“The dealer group, formed from the former AMP advisers association, launched Wealthpoint General Insurance, a standalone brokerage for its 50 member businesses to transact through.
Wealthpoint chief executive, Simon Manning, said Wealthpoint General Insurance had been formed primarily to support member businesses to expand their general insurance offering to clients.
He said Wealthpoint was keen to expand the range of suppliers members could deal with, particularly for commercial, property and liability business lines.
Successful long-term relationships with AMP General and Vero Insurance were still in place and new supplier arrangements with specialist insurers such as Delta and Star Insurance were introduced for Wealthpoint members in the past year.
But, Manning said Wealthpoint was conscious that access to some of the larger insurers, including those operating under IAG brands, was only possible if structured through a standalone brokerage.
"General insurance has always been a pretty big part of our members' businesses and it's been something we have been thinking about for a long time," Manning said.
"There are a few unknowns about how much it will be used as it is only an option for our businesses who want to expand their GI operations or look to bring in more expertise."
Manning said uptake had been encouraging since they began offering its expanded services at the start of this month and "if we overshoot on our expectations then we will have to look for some more people pretty quickly".
"At the moment we are a small staff and are monitoring things closely but the phones have been ringing, so it's pretty encouraging."
He said while some Wealthpoint member businesses had explored the option of setting up their own brokerages, there were significant barriers such as high setup costs, lack of scale at member level and potential regulatory risks.
He said with that in mind Wealthpoint had joined forces with Auckland-based brokers Steadfast.
"They have been extremely helpful, they are very professional and have arrangements with virtually all of the market so that's helped us form alliances with all of the providers we want to.
"They have given us a really good tech platform as well.
"Now it's up to us working through the list of insurers and working with them to bring them onstream. Getting agreements in place will take time and we are being quite methodical working through that." Click here to read more
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