St Andrew’s Insurance Group has announced a new distribution partnership with Neilson Financial Services to introduce additional life insurance products in Australia.
Neilson Financial Services, which operates in the UK and Canada, specialises in distributing insurance products through technology-driven solutions.
The agreement aims to improve accessibility to coverage as concerns over underinsurance continue in the local market.
The collaboration will enable St Andrew’s to leverage Neilson’s distribution network to reach a broader customer base.
Three life and funeral insurance products were introduced in a soft launch in November 2024, with initial demand exceeding company projections.
St Andrew’s chief executive Matthew Way (pictured) said the partnership aligns with the company’s strategy to expand its distribution channels and enhance access to life insurance.
“Life insurance remains an essential product in terms of peace of mind and financial security for many families and the community as a whole, but since the major banks exited the sector the Australian market lacks locally owned and focused providers that can prioritise the needs of Australian consumers who simply aren’t the focus of large foreign insurers,” he said.
Way noted that life insurance uptake in Australia is lower than in markets such as the UK and US, where products are more widely available.
“There is a tremendous underinsurance issue in Australia that the large foreign insurers are not addressing, and, with Nielsen’s expertise, networks, and customer-first approach, we are bringing simple and sustainable products to market quickly to address the underinsurance issue,” he said.
A survey commissioned by the Council of Australian Life Insurers (CALI) found that Australians are significantly more likely to insure their vehicles than their income or life.
The survey, which included responses from over 5,000 employed Australians, showed that 79% had motor vehicle insurance, while only 34% held life insurance. It suggests that many Australians prioritise insurance for physical assets, such as cars and homes, over financial protection for themselves or their families.
Cost-of-living concerns are also influencing insurance choices. Nearly half of respondents said they would reduce or forgo additional superannuation contributions before making other financial adjustments. The survey also found that Australians were more likely to cancel life insurance policies than car or home insurance when managing expenses.
Way said the company is exploring further strategic partnerships and acquisitions to support growth.
“As we look to find more ways to address the under-insurance issue for Australian consumers, we are actively seeking further strategic partnerships as well as reviewing potential corporate acquisitions that are accretive and in line with our strict criteria,” he said.
