Co-op Insurance NZ and Provident Insurance Corporation Limited (Provident) today announced the release of an innovative new ‘multi-year’ vehicle insurance product being rolled out through Provident’s national network of registered motor vehicle traders.
This unique new product allows customers to lock in their insurance cover for up to 3 years in one go, which has big benefits for both the customer and the dealers, says Steve Owens, Provident’s Chief Executive.
“It’s a win-win for everyone. The customer gets their premium rates and accident-free discount locked in until their next policy renewal date irrespective of whether they’ve made a claim or not” said Mr Owens. “It also means when there is a finance provider involved, they know their client and their security are covered for a much longer term than a traditional 12 month renewable policy. That reduces lots of effort in terms of chasing up insurance details if there is a write-off situation with a financed vehicle.”
The icing on the cake for the customer taking out longer term policies is that the total excess payable will reduce by $100 on each 12 month anniversary, said Steve Owens.
“If someone takes out a 3 year policy today, they’re guaranteed to fix their premium for the next three years, and if they make a claim during the second year, they’ll only pay $200 instead of the $300 standard excess. It’s similar to signing up to a fixed-rate mortgage in that it gives the customer certainty in what they’ll be paying for the next three years” Mr Owens said.
“We know dealers and their customers will embrace this new option to take out multi-year policies when they look at the combined benefits.”
Co-op Insurance NZ and Provident released an annual renewable product in April this year which has been selling extremely well throughout the country, and this unique new product enhancement is the next logical step in the strategic partnership.
“Our alliance with Provident means we can leverage our infrastructure and experience to diversify into new markets with a strong distribution partner who is looking for innovation and versatility” said Henry Lynch, Chief Executive of Co-op Insurance NZ. “This multi-year product is a New Zealand first and we’re delighted it has been developed and brought to market by two Kiwi owned and operated companies.”
Co-op Insurance NZ developed the back end systems and underwrites and supports the Provident-branded motor vehicle insurance policies that Provident’s dealer network sell to their customers.
Steve Owens says Provident are excited to bring this product innovation to the market place in conjunction with Co-op Insurance NZ.
“It’s been refreshing to work with Co-op Insurance NZ in terms of the speed of bringing things to market. Our dealer network is excited too – we had our first sale for a 3 year policy within two hours of the new option going live!”