The strategy for NexAssure is changing. The existing NexAssure is an advisory business acting as consultant in designing insurance products and working with insurers and reinsurers to get risks covered on behalf of clients. Products are largely extended warranty “add on” policies for motor cars, white goods, phones etc. Also NexAssure have developed credit card products to help credit card issuers differentiate and health products such as female cancer cover.
The “new” NexAssure is under construction. A new holding company has been established in Singapore, NexAssure Group Pte Limited, which will own the existing NexAssure Solutions business and two new entities, NexAssure Agency Limited and NexAssure Management Ltd. The Agency company is a Hong Kong based Underwriting Agency that will underwrite products for up to five reinsurance companies. One top five global reinsurer is already committed to support us and a second Lloyd’s syndicate is well on the way. This agency will earn fees and profit commission. To support this business we are establishing a Third Party Administration (TPA) business. The TPA will handle the claims for NexAssure business and hopefully attract other third party business.
This is an exciting huge step up for NexAssure as the new structure and capability will have the potential to build significant value and moves the business from a middle man’s middle man to a principal.