Woolworths Limited (Woolworths) continues its push into the financial services sector with the launch of Woolworths Life Insurance (WLI).
Along with Woolworths Pet Insurance, WLI is the first of many financial services set to be introduced, according to the company announcement.
All Australian residents aged between 18 and 65 are eligible to apply for WLI, which provides cover from $100, 000 to $1.5 million depending on age and income.
Members also have the option to pay their premiums either fortnightly, monthly or annually.
As part of the announcement, Woolworths will partner with Swiss Re and The Hollard Group (Hollard) to provide what Woolworths described as a cost effective, flexible and easy to understand alternative to many existing options providing financial protection.
Woolworths will be responsible for the overall value proposition of WLI, while Swiss Re will act as the underwriter, and Hollard as the distributor and administrator, Woolworths stated.
Woolworths Head of Insurance George Hughes said the alliance will provide a solid backing to an effective, low-risk model that represents the first step in entering the insurance sector.
"We intend to have long term presence in the insurance sector, with the ability to cater for all our customers’ insurance needs," said Woolworths head of insurance George Hughes.
"Our research tells us that many everyday Australians find insurance difficult to understand and access, to the extent that 95 per cent of families do not have adequate levels of life cover."
Hughes’ stated figure came from the ‘The Life/NATSEM Underinsurance Report’ released in February 2010.
According to Hollard managing director Richard Enthoven, the cover offered by Woolworths represents a substantial opportunity.
"Based on our extensive international experience distributing insurance in partnership with large retailers, we are confident that the Woolworths Insurance initiative is the single largest untapped insurance opportunity in Australia," Enthoven said.
