HBF diversifies into life insurance

HBF today announced the latest stage of its diversification program with the launch of a new life insurance product for members.

HBF Managing Director Mike Gurry said life insurance is a first for the organisation and natural extension of HBF's range of services offering protection and well being to WA families.

"As a not for profit mutual organisation, HBF needs to focus on generating growth in areas other than health insurance to reduce the pressure on health insurance premiums.

"The ageing population and spiralling costs for technology and treatment are continually putting pressure on health insurance premiums."

Mr Gurry said HBF has a proven track record in fostering growth in business outside of health, as the largest travel insurer in Western Australia and one of four largest providers of home and car insurance.

The move into life insurance comes after the recent signing of a memorandum of understanding with the Bank of Queensland to investigate the possibility of providing a range of housing loans, savings accounts and personal loans to members

The products will be manufactured by Bank of Queensland and sold as HBF-branded products.

A formal agreement with the Bank of Queensland in respect of the new products should be signed by mid-year, and HBF expect to have the products available in the latter part of the year.

HBF has also recently successfully moved into financial planning, which has doubled its operations annually since launching in 2004.

HBF research shows life insurance will be well received by its members.

"Our life insurance product helps the policy holder's family cope with the repayment of debts, such as loans, mortgages, credit cards, some living costs, school fees and funeral expenses, in the unfortunate event of their death," Mr Gurry said.

HBF's Ezicover Term Insurance is based on an award-winning product that offers a range of simple cover options at a highly competitive price.

The product is being issued by Zurich Australia and will be promoted under the HBF brand.

Mr Gurry said HBF had no aspirations to become a traditional bank, but felt it could provide a select range of financial services products that would form part of its broader suite of products on offer.

The announcement comes at a time when banks and credit unions are themselves diversifying into other financial services.

BankWest's insurance and wealth management business St Andrews, has formed an alliance with RAC Victoria to expand its customer base.

Also, the proposed likely merger of Home Building Society and StateWest Credit Society will result in a customer base of around 100,000, and the new entity will also place extra emphasis on the provision of financial services outside of its traditional product lines.

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HBF DIVERSIFIES INTO LIFE INSURANCE

HBF today announced the launch of a new life insurance product for members as the latest stage of its diversification program.

HBF Managing Director Mike Gurry said life insurance is a first for the organisation and natural extension of HBF's range of services offering protection and well being to WA families.

"As a not for profit mutual organisation, HBF needs to focus on generating growth in areas other than health insurance to reduce the pressure on health insurance premiums.

"The ageing population and spiralling costs for technology and treatment are continually putting pressure on health insurance premiums."

Mr Gurry said HBF has a proven track record in fostering growth in business outside of health, as the largest travel insurer in Western Australia and one of four largest providers of home and car insurance.

HBF has also recently successfully moved into financial planning, which has doubled its operations annually since launching in 2004.

HBF research shows life insurance will be well received by its members.

Recent studies by the Investment and Financial Services Association reveal that 35% of families with children at home have no life insurance cover and
only one in five have cover greater than $200,000.

"Unfortunately too many WA families do not have life insurance or are underinsured and only realise the benefit of adequate life insurance when it's too late," Mr Gurry said.

"Our life insurance product helps the policy holder's family cope with the repayment of debts, such as loans, mortgages, credit cards, some living costs, school fees and funeral expenses, in the unfortunate event of their death."

HBF's Ezicover Term Insurance is based on an award-winning product that offers a range of simple cover options at a highly competitive price.

The product is being issued by Zurich Australia and will be promoted under the HBF brand.

The new product follows the recent announcement that HBF had signed a Memorandum of Understanding with the Bank of Queensland to investigate the possibility of providing a select range of financial services to members.