Tower Australia Limited has entered into a joint venture arrangement with Virgin Money to deliver a Virgin-branded insurance offering.
The alliance was announced to the Australian Securities Exchange (ASX) today with Tower describing it as a further step in its strategy to provide simpler and easier life insurance, while Virgin Money described it as a broadening of its current insurance portfolio.
Virgin Money managing director, Matt Baxby said he saw a lot of opportunity for his company in the sector with research showing that 95 per cent of families in Australia do not have adequate insurance cover.
Tower chief executive, Jim Minto said he was confident of a winning formula by combining Tower’s expertise with Virgin’s brand power.
The two companies said Virgin Money would lend its brand, customer service and marketing expertise while Tower would manufacture the life insurance products and provide ongoing infrastructure to mange all policies.
The alliance between the two companies is for an initial period of seven years.
