An Post is entering the motor insurance market in a first step towards enhancing its presence in the personal financial services sector.
A new company, One Direct Insurance, will initially offer motor insurance to customers through a national call centre in Athlone and 1,000 post offices throughout the State.
Over the next 12 months, the company will extend its services to home insurance, life cover, personal loan facilities and pension-related products.
The Minister for Public Enterprise, Ms O'Rourke, who launched the new company in Athlone yesterday, said it allowed An Post to link its national network of post offices with its reputation as a trusted intermediary in the financial services market.
The call centre, which begins operating next Wednesday, will initially employ 25 people but it is hoped this will increase to 50.
In the insurance market, the direct-to-customer channel accounts for 25 per cent of sales in the UK but only 10 per cent in Ireland, said Mr Terry Reynolds, director of e-commerce development at An Post. The motor insurance product, designed and underwritten by Hibernian Insurance for An Post, focuses on specific segments of the market. It covers 25-74 year olds with named driver coverage offered for 21-24 year olds. Fully comprehensive and third party fire and theft is available for cars with up to 2500cc capacity and £35,000 (#44,441) value.
Potential policy holders must be free of accident or conviction for at least three years.
