Business Daily Media

Compare Club set for period of massive growth in life insurance


Personal finance company bridges gap in financial advice market and bring life insurance expertise to the masses

Personal finance marketplace Compare Club is scaling with an aim to grow to $100m of managed premium in the life insurance space with the acquisition of financial advisory service Lifelong Insurance Solutions. 

The multi-million dollar acquisition means the personal finance marketplace company is well prepared to fill the void left by the exodus of life insurance advisors from the industry in the wake of increasing regulation around life insurance advice.

Since 2021, Compare Club has added an additional 2,600 additional life insurance customers through acquisitions. The company currently has over $40m of life insurance premium under management and its projected trajectory is to have $100m within three years through both organic growth and acquisitions. 

Last year, Compare Club also acquired a portion of Zebra Financial Services’ life insurance book. The company also acquired financial news publication YourLifeChoices in 2019. 

Lance Goodman, Compare Club CEO, said: “As a result of increased compliance costs stemming from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, only people who can afford top rates for financial advice are getting life insurance advice, leaving a big gap in the market for middle income households who are buying a highly complex product.”

“With increasing numbers of financial advisors getting out of the life insurance business due to increased regulatory costs, we’ve identified an opportunity for growth in the $33bn sector and our business model makes us uniquely placed to fill this gap.”

“We’re always looking for new and innovative ways to help our customers. With this latest acquisition, we’re best placed to use or scale and technology to step into the gap that regulation created. We’re able to service customers who can’t be serviced by traditional financial advisors because that model no longer suits them.”

As part of the most recent acquisition, Compare Club has onboarded three of Lifelong’s senior financial advisors, expanding their scale and capability to put the company in a unique position to provide affordable life insurance brokerage to a target market which can’t receive this service elsewhere.

“One of the main advantages of being under the Compare Club brand is that due to our scale, we can access premium services and prices from insurers through our partnerships. There's also less need for paperwork due to our digital capabilities, something that many financial advisors can't offer,” Mr Goodman said.

“Additionally, being part of Compare Club Group comes with the ability to help Australians manage some of their other major expenses such as health insurance, their mortgages, car loan repayments and even energy costs. Every one of our vertical product lines has a unique offering or dominates the market in a certain way, and life insurance is no exception.”

“Our dedicated advice team means we've been able to succeed in the life insurance market where competitors, who white label other providers’ services, have failed.”

“The free nature of our general advice model means we're uniquely positioned to benefit from the exodus of financial advisors, which will only get worse as we get closer to September - the deadline for their adviser exams,” he said.

“This growth in life insurance has resulted in earnings growth for Compare Club as a whole. There is a lot of scope for a comparator-broker to grow in life insurance over the coming decade and we expect there to be more acquisitions in this space in the near future.”

For more information, please visit compareclub.com.au  

Business Reports

How to destroy a ‘forever chemical’ – scientists are discovering ways to eliminate PFAS, but this growing global health problem isn’t going away soon

How long do we really need chemicals to last?Sura Nualpradid/EyeEm via Getty ImagesPFAS chemicals seemed like a good idea at first. As Teflon, they made pots easier to clean starting in the 1940s. They made jackets waterproof and ...

Will the Inflation Reduction Act actually reduce inflation? How will the corporate minimum tax work? An economist has answers

Don't expect the Inflation Reduction Act to bring down prices all that much.AP Photo/David ZalubowskiThe U.S. is about to spend US$490 billion over 10 years on reducing greenhouse gas emissions, improving health care and reducing ...

Is Maintaining Good Customer Service Difficult?

Good service is the key to success within any customer-facing business. Employees should strive to help in a clear and friendly way, to attract new customers and retain current clients. There are many ways in which you can imple...

Business welcomes Safeguard consultations

A comprehensive consultation process on the Safeguard Mechanism will be critical to achieving our targets and locking in a stronger economy, Business Council chief executive Jennifer Westacott said. “It’s time to move beyon...

Adyen advances in-person payments with the launch of in-house designed terminal range

Adyen (AMS: ADYEN), the global financial technology platform of choice for leading businesses, is pleased to announce the launch of its first in-house designed terminals. Innovated to facilitate diverse payment use cases, the ...

Water education is key to creating sustainable communities

Water has shaped the unique landscape and the culture of the Northern Territory for over 60,000 years and is just as important today. Water is at the centre of the Territory lifestyle. In remote communities, preserving water hel...

Web Busters - Break into local search

WebBusters.com.au