Direct life insurance set for growth

The growth of the direct life insurance market looks set to continue following news third party insurance provider BlueInc and specialist software company Fintechnix have signed a three-year agreement that will see both companies work together to deliver solutions to the insurance industry.

BlueInc is a specialist provider of life insurance policy administration services to insurance companies and distributors, while Fintechnix is a developer of OneOffice, a front and back-office software solution for the life insurance, superannuation and investment industries. The agreement will see the continued growth of the direct insurance market, an area that has seen significant acceleration over the last three years.

Commenting on the agreement, Russell Howden, managing director at BlueInc, said: "The growth of the direct life insurance products of relative newcomers in the market like Budget Direct and Aussie Home Loans represents a breaking of the delivery mould that once required a complex world of seller-advisers. This new deal positions BlueInc to continue to administer a large and growing portfolio of direct life insurance products for a number of strategic customers.

"The creation and sale of new insurance products has become increasingly simple and straightforward, particularly with the development of software platforms," Fintechnix chief executive Phil Fourie said.

"This is supported by a wide range of web access and use of the same component to facilitate processing, be it by someone in the back-office or a customer or adviser."

BlueInc has been using Fintechnix' OneOffice software for the past five years. The new deal will now allow the provider to administer direct life insurance products for its customers.