The Quinn Group has created a new direct-life assurance operation, Quinn Life, to sell investment, personal pension and life assurance products over the telephone.
The group, which has been selling motor and household insurance through its Quinn Direct arm since 1996, says Quinn Life is modelled on similar telephone operations in Britain, such as those run by Virgin Direct and Scottish Widows.
With no costly branch network to maintain and no commission to be paid to brokers or salespeople, the group believes it can offer customers better value.
"We examined the way business has been done in Ireland and have streamlined it to remove the jargon and simplify products, make them a lot cheaper for consumers and deliver them over the phone direct to our customers," said Mr Kevin Lunney, director of financial services with the Quinn Group.
The new service will begin today with 10 operators and can be contacted on 1850 77 1851.
Mr Lunney said the charging structure would be simple, with no hidden charges or entry fees such as a bid/offer spread. Instead, there will be an annual management fee of 1.5 per cent for pension funds and 1.35 per cent for life assurance investments.
Lump-sum investments of more than £5,000 (€6,348.69) will not incur a transaction charge, while smaller lump-sum investments will incur a once-off fee of £10.
Those making regular yearly contributions will pay £10, while monthly contributions will be charged at £3 per month. Customers will receive bi-annual statements of account.
The group is offering investors a choice of two index-tracking funds, the Quinn Euro Equity Fund (to be invested in the Dow Jones Euro Stoxx index of the 50 leading European shares) and, for the cautious investor, the Quinn Euro Bond Fund (tracking European government bonds).
Mr Lunney said the Euro Stoxx index had outperformed all Irish managed funds over the last seven years, delivering a return of 385 per cent or an average of 21 per cent each year. Quinn Life will be working with NCB Stockbrokers in tracking the index.
Investors can switch between the two funds and will be allowed two free switches a year before incurring a £10 charge every time they switch after that.
The company will also offer term life cover, which can be arranged and underwritten over the telephone. It says its premiums will be at the lower end of the price range, particularly for basic types of life assurance such as mortgage protection. The minimum monthly premium will be £10. Quinn Life has an arrangement with German insurer Munich Re to underwrite its term life assurance.
