Bright Grey is set to enter the business protection market this autumn.
It will initially concentrate on individual business protection, offering key person and executive cover, partnership insurance and shared protection, before moving into the group market at a later date.
The UK has a business protection gap of £275bn, according to Swiss Re, as well as a £2.3tn personal protection gap.
Corporate protection sales manager Jerry Bayman says: “It is a natural development for us. There is a lot of opportunity there because there are not a lot of providers taking that market seriously.”
Aegon Scottish Equitable is the biggest player in the business protection market and recently ran a number of seminars educating advisers on the area. Bright Grey is also planning training and seminars.
Bayman says the fact that advisers are shying away from business protection is contributing to the huge insurance gap and risks storing up future accusations of negligence.
He says: “If a company’s key person falls dead and the business suffers, I can see the company suing the adviser for not plugging that gap.”