Cigna New Zealand has confirmed it will officially merge with OnePath Life on 30 November 2018, ahead of its originally intended early 2019 completion date.
The life insurer announced in May that it had agreed to purchase OnePath from ANZ for $700 million (See: ANZ New Zealand Sells Life Arm…) and was recently granted final regulatory approval from the Reserve Bank and the Overseas Investment Office (See: Cigna Acquisition Update…).
The two companies combined will become New Zealand’s third largest life insurance player, with nearly 500 staff.
Speaking to RiskinfoNZ, Cigna New Zealand CEO, Gail Costa, said the acquisition is about broadening its distribution base to include the independent adviser channel and acquiring more customers.
Cigna and OnePath held roadshows with advisers nationally in August/September, to find out what changes advisers would like to see following the merger.
Costa said advisers had commented that the OnePath product range needed “refreshing” as there hadn’t been a lot of investment in the channel by the bank.
“We’ve got a huge range of potential initiatives identified, across the different channels,” she hinted, adding they will be looking at a number of product changes and their reinsurance arrangements.
“We’ve got a huge range of potential initiatives identified…”
She noted Cigna is excited to step into the independent adviser channel as it seems to be the preferred method of choice by New Zealanders purchasing insurance.
“So for us to be credible we need to have that channel,” she said, adding they are anticipating the possibilities for their adviser channel and the ways in which they can invest in the right areas via adviser consultation.
Costa said she is looking forward to working with advisers and solving the underinsurance problem in New Zealand.
The insurer is also currently doing brand research but confirmed the two brands will continue to be used for the time being. She expects that within twelve months they will decide whether to possibly keep both or have a single brand.
UnderwriteMe Technology
Cigna Life Insurance New Zealand has also adopted UnderwriteMe’s Underwriting Rules Engine (URE), claiming to be the first New Zealand based insurer to do so.
The decision was made in an effort to enhance the customer experience across New Zealand.
Costa said it provides the most comprehensive and advanced ruleset for life insurance products, setting it apart from others in the market.
“Refinements can be made easily with no coding or IT support required, while the simple and intuitive rules engine will mean Cigna is positioned to be able to bring products and benefits to market more quickly,” she said.
“UnderwriteMe will give Cigna a strong foundation to support future diversification of distribution channels, including independent financial advisors and insurance advisors, and development of products to meet more of New Zealand’s insurance needs.”
Cigna follows 15 other insurers who have taken up the solution in the UK, Ireland and Australia in the past three years.
New Staff Benefits
Cigna New Zealand also announced that it will be offering market-leading staff benefits including extending paid parental leave and increasing leave entitlements, effective on the 30 November.
“The merger of our two companies is an ideal time to bring in these changes, which reflect Cigna’s commitment to creating a workplace where people can flourish professionally and personally,” said Costa.