Coles Supermarket to Introduce New Products in Their Insurance Services
Published By : 13 Mar 2015 | Published By : QYRESEARCH
Coles, a leading supermarket chain has planned to further expand its insurance services which will provide insurance to pets and travel. Coles had stepped into insurance sector four years back and as on date hold more than 400,000 life, car and home policy owners. Moreover, Coles stated that they are always open to new opportunities. In the last year, Coles trademarked around 1800 Red Car and 1800 Red Home and informed in this week that it is not about any new products.
Competitor Woolworths is also involved in providing insurance products to cover car, home and contents, travel, life, and pet. However, they have informed that there are no plans for launching new products in 2015. A spokeswoman stated that Woolworths’ insurance sales are not included in the company’s accounts; insurance being a positive but small line of service.
TS Lim, the research head of Bell Potter’s stated that supermarkets should consider generic products like pet insurance and not to get into complicated products such as life insurance or home loans. He added that the Australian market is already saturated with insurance-selling enterprises which compromise more than 100 insurers that are swimming in the same revenue pool. Due to which it is very difficult to sustain in such a commoditized market.
In addition, Coles is also grooming for the launch of a new credit card as a joint venture with GE Capital. The Managing Director of financial services at Wesfarmers (Coles' parent company), Rob Scott, stated that financial services division proved to be a great way to influence company’s brand name, distribution and analytics. It will also help in creating a dedicated customer database.