Lombard launches online insurance, mortgage agency

Lombard launches online insurance and mortgage agency: www.maestro.co.nz

The website is a breakthrough in the sale of insurance and home loans in New Zealand.

Financial services provider Lombard Group Limited (Lombard Group; NZX: LOM) today launched an online insurance and mortgage facilitation business, Maestro Commerce Limited. 

The website delivers the convenience and transparency of being able to compare and apply for a wide range of insurance cover and home loans from leading New Zealand providers in a single location. 

Among the providers on board are TOWER, Asteron, FidelityLife and ASB Bank, while   agency agreements with a number of other significant companies are in the final stages of negotiation.

Lombard Group Chief Executive Officer Michael Reeves describes Maestro as a truly independent, consumer-focused service that will meet the needs of large numbers of web users.

"We believe the time has come for this service.  Huge advances in online technology in recent years now allow powerful web solutions to be developed cost effectively.  At the same time the web is increasingly becoming the hub around which people manage their daily lives," Mr Reeves said.

The launch comes a week after Lombard announced it had doubled its after tax annual profit to $4.86 million and entered into an agreement to acquire Tasman Mortgage Group, a securitised mortgage arranger and mortgage broking subsidiary of Australian Stock Exchange-listed Australasian residential investment company Blue Chip Financial Solutions Limited.

"The Tasman acquisition and now Maestro's launch underpins Lombard's strategy of developing and acquiring businesses that deliver synergies, efficiencies and multiple revenue streams to the company.

"Tasman's intellectual capital and strong relationships with the lending community will be of immediate benefit to Maestro's mortgage broking business," Mr Reeves said.

While Maestro currently provides services in the complementary product areas of insurance and mortgages, a third service is under development: the ability to compare, apply for and track the performance of investment products, such as Kiwisaver funds.

"Maestro is a single site for managing the financial products New Zealanders are most exposed to and it will evolve to meet the ever changing environment," Mr Reeves said.

Maestro's market is the 1.1 million New Zealanders between 25 and 44 years of age, especially the 240,000 classified by researchers as 'professional, executive or self employed.' 

Nielsen Media Research in December 2006 showed over 80 percent of that 'professional' group had been using the internet for over three years but 43 percent of them had no life insurance, 56 percent had no health insurance and 77 percent had no income protection cover.

The Nielsen figures for all 25-44 year olds showed even higher levels of under-insurance, with 54 percent without life insurance, 69 percent without health insurance and 87 percent without income protection.

"Life insurance, health insurance and income protection are all part of a prudent insurance portfolio and with so many uninsured high income earners it is clear New Zealanders need better access to these products and support on the internet, which is the media they are increasingly familiar with," Mr Reeves said.

"Many New Zealanders' initial exposure to buying insurance comes with the purchase of their first home, so the convenience for the consumer of combining home-loan and insurance applications on the same site makes sense," he added.

Delivery of a simple, convenient, comprehensive and transparent service has underpinned Maestro's development.

"Having compared insurance and mortgage options at their leisure, applied online and received insurance or a loan, the client's records are available to them in a secure form, at any time from anywhere in the world, just like an online filing cabinet," Mr Reeves said.

Current Business Model

Insurance
The site uses what is known as an aggregator model which delivers a quick and easily understood comparison of both risk (life, trauma and income protection) and health insurance from leading providers TOWER, Asteron and FidelityLife.  This model, which has become popular in overseas markets, allows visitors to the site to compare price and cover, choosing the option that best suits their needs and budget, and then apply online. 

Plain-English explanations and answers to common questions about insurance products can be found on the site, and Maestro's trained customer service team is available to answer consumer inquiries by phone or online.  Maestro will introduce more insurance partners and products over time.

Mortgages
Maestro's mortgage service provides an online application form, the support of experienced bankers and access to leading home loan providers.  Learning about loan options and preparing to apply is aided by mortgage content and calculators from the Retirement Commission's popular online financial services website www.sorted.org.nz, which have been transferred in their entirety onto Maestro. (Sorted does not endorse any of the products or services offered on the Maestro website).

Home loans on Maestro are currently available from ASB Bank, Asteron, FidelityLife and Guardian Trust.  Broker agreements with a number of other lenders are in the final stages of negotiation.

About Lombard Group
Lombard Group Limited listed on the New Zealand Stock Exchange (NZX) main board in December 2005 following the takeover of a NZX-listed company.  Lombard's principal business is Lombard Finance & Investments Limited, a specialist property financier.  Lombard plans to grow its footprint across the financial services market through organic growth and by acquisition as opportunities arise. 

Lombard Group is online at www.lombardgroup.co.nz

ENDS

© Scoop Media