MMA Group has launched a new Gibraltar-based insurer.
Gateway Insurance Company has been licensed to underwrite personal lines business.
The insurer has initially rolled out a full-cycle private motor product via SSP. The product will be distributed via Swinton branches.
Gateway director, Derek Plummer, said: “After extensive research, we found Swinton's panel of insurers weren't always able to compete in terms of price. We chose Gibraltar as it is a member of the EU and you can transact insurance services to another state. This is a low-cost model so prices will be competitive.”
Plummer emphasised Gateway is not limited to writing motor business: “Chris Collins, head of insurance at Gibraltar's Financial Services Commission, advised us to obtain a general licence for personal lines so there is scope to expand into other areas in the future.”
He added: “This is a greenfield start and our ambitions for this year are quite modest. We will trade for two or three months and at the end of September we will be in a better position to assess the success of the pilot.”
In May, Insurance Times reported that private motor's contribution to MMA Insurance's overall portfolio would fall from 60% in 2005 to under 40% in 2006.
Plummer said: “The current situation is soft in motor and the trend is towards bigger brands and direct writers. When the market hardens, as we obviously hope it will, Gateway means we will be in a better position to compete”.
