Web Based Insurance Business' 10th Anniversary

Web Based Insurance Business Marks 10th Anniversary

This month Aon New Zealandwill celebrate the 10th anniversary of the launch of its Stylecover range of personal insurance lines. The Stylecover offering was the first ‘quote and bind’ insurance offering provided over the internet through a web-based application in New Zealand.

The web-based application that underpins Stylecover was developed by Wang, the forerunner to Gen-i, and built on the JADE platform. This enabled Aon New Zealandto build an entirely new business that today supports over 1,200 insurance agents with some 18,000 customers, who hold around 36,000 insurance policies.

Aon New Zealand’s Executive Director & Group Schemes Manager, Colin Miles, said: “Ten years ago, delivering financial products and services over the internet was almost unheard of. E-commerce was in its infancy, dial-up internet connections were the norm and general access to the internet was limited. However, as the uptake of broadband and e-commerce has become commonplace, the benefits of a web-based business model have become more compelling.”

Essentially, the system enables independent third parties such as insurance agents, mortgage brokers and others to access Aon New Zealand’s Stylecover website www.stylecover.co.nz  to quote insurance cover and complete all the necessary documentation online 24/7 on behalf of their clients. With a laptop and wireless access, this can happen anywhere in the country.

Because of this ability Aon New Zealandhas, over the past decade, been able to build an entirely new personal lines business. This business complements the company’s core business of designing and implementing corporate insurance programmes and risk management. Aon New Zealandis New Zealand’s largest insurance broker by a considerable margin.

Mr Miles said, “While the company’s share of corporate business is experiencing steady growth, both the SME and personal lines business have expanded considerably in recent years. The impact of the global financial crisis has seen the number of new personal lines policies fall slightly, when compared to last year, but revenue has risen due to clients revising and updating their policies.”

The Stylecover web-based application contributes premiums of over $20 million per year to Aon New Zealand.

Not only has the technology platform delivered the business, it has proved remarkably robust and enduring.

Mr Miles says, “Over 80% of the original application is still being utilised and is still relevant; having well and truly exceeded the industry standard life expectancy of between 3 & 5 years. The credit for this is largely due to getting the design right at the beginning; to working with Gen-i, knowing, and understanding what was required of the technology, and the fact that the system was built on the JADE technology platform.

“You could say that we took a huge risk 10 years ago going where no one else in New Zealandhad been. However, that enabled us to gain first-mover advantage and build a business model that has yet to be replicated in this country. It also enabled us to branch out and build a complementary business leveraging our presence and reputation in the corporate market.

“This is a case where technology has provided a huge competitive advantage for Aon New Zealand,” Mr Miles said.

ENDS

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