Sovereign reports record demand for its newest products
Sovereign reports record demand for its newest business products
Sovereign’s newly released Business Continuity and Rural Insurance benefits have quickly become among the company’s fastest-selling new products ever.
In the month since the products were launched, Sovereign’s staff have been flooded with new business. Sales have already exceeded what took the last business product three years to achieve, and advisers are reporting an enthusiastic reaction from customers. At the product launch event, one adviser commented: “simply the best business insurance product on the market, with fantastic features.”
Another said: “Finally, a business product that is easy for clients and their accountants to understand and easy for me to implement. It’s a credit to the Sovereign team for the calibre of the launch.”
“We’re delighted with the response,” says Sovereign’s Chief Distribution Officer, David Haak. “It shows that despite high rates of under-insurance in New Zealand’s business sector, there is a strong demand for easy-to-understand, well-targeted business products with transparent benefits.
“When we launched these products we were confident they would tap a need in the market, and that’s reflected in our sales figures.”
New independent research commissioned by Sovereign has revealed that 45 per cent of New Zealand businesses have no business insurance whatsoever, and 75 per cent have no insurance to cover them if key people are unable to work. The new benefits are designed to address these shortfalls.
“Smaller businesses are the most likely to be under-insured,” says Mr Haak. “The rural sector is particularly at risk, because farmers and sharemilkers can be left with challenging, physical work to do and no back up if they become ill or otherwise incapacitated.”
Sovereign’s TotalCareMax Business Continuity and TotalCareMax Rural Continuity benefits protect businesses in the event of illnesses or accidents incapacitating key staff.
Rural Continuity provides a monthly payment if a farmer is unable to work for more than 10 hours a week due to an accident or ill health, while Business Continuity is available to both business owners and key employees.
Sovereign has committed to a particularly quick and efficient turnaround on claims, reflecting the need for certainty and continuity in business.
A range of inclusions and options have been custom-designed, such as a two-year membership to Business Mentors to help Business Continuity customers back on their feet after making a claim, and an option for farmers to receive a higher claim payment during a peak season.
“Our independent research tells us that many decision makers in businesses believe there is little value in insurance, think that business insurance is too complicated, and don’t trust insurance companies. Many are also unaware of the types of insurance products available,” says Mr Haak.
“Sovereign’s goal is to change those perceptions by offering innovative and easy-to-understand business products that answer the very specific needs of business owners, both urban and rural.
“We believe the reaction we’ve seen to our two newest releases proves there is great potential for insurance companies to better cater to the needs of businesses.”