Rivals keen to attack Southern Cross

Rival health insurers are turning up the heat on troubled market leader Southern Cross, with Tower Health and Life this week launching new health products.

Tower Health managing director Jim Minto says a nationwide roadshow promoting the products to advisers wasn’t timed to take advantage of Southern Cross’s problems.

The roadshow, which began in Auckland on Monday, was planned in October, Minto says. That was months before Southern Cross came under fire for long delays in reimbursing claimants.

However, he makes it clear Tower Health isn’t averse to taking advantage of its rival’s woes, and is keen to talk to disgruntled Southern Cross customers considering changing insurer.

"We’re looking to be proactive in growing the business."

Tower Health has already noticed an increase in inquiries since publicity about Southern Cross’s problems, which the health giant has blamed on a new computer system.

However, Minto says some Southern Cross customers have little choice but to stay where they are because any new policy is likely to include exclusions for pre-existing conditions.

Attempts to cash in on Southern Cross’s troubles have already been made by Sovereign, which has been promoting itself as an alternative insurer.

Minto says Tower’s new health insurance range rationalises products previously offered under the Tower and Axa brands. A key feature of the range is a "wellness benefit" offering customers $100 every three years to get a full medical check-up.

The revamp follows the merger of the old Tower and Axa products onto one computer system. Commission rates have also been standardised.

Along with the health products, Tower unveiled a new income protection product and quoting system.

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