Data Insure is set to take on the local licence and channel development role for data insurance and backup service Indatasure, after distributor Renaissance pulled out of the venture amid falling profit.
Nik Key, who was channel manager of Renaissance Indemnity, the division Renaissance established to promote the service, has now joined Data Insure as a shareholder.
Data Insure owner Mike du Chateau says it hopes to finalise the licence agreement in a couple of weeks, and says Key has made contact with “exciting potential resellers”.
Du Chateau has a lengthy background in insurance broking and says Data Insure is a small family business. It was previously an Indatasure reseller under Renaissance and used to be called Data Cover.
Greg Hodgkiss is one of four people to hold the Indatasure patent under the holding company Data Insurance Holdings. He says Renaissance was initially appointed the New Zealand brand manager for Indatasure, but was later awarded an international licence for the service.
Last October, Renaissance managing director Paul Johnston told Reseller News the distributor was launching Indatasure in New Zealand, to be followed by Singapore, the UK and the US.
However, Hodgkiss says it became clear Renaissance would not be able to expand Indatasure.
“After Renaissance’s [pullout] we’ve decided we’ll never go back to a model that gives international rights to a single company,” says Hodgkiss. However, he doesn’t see Renaissance’s efforts as a failure, acknowledging the distributor's recent full-year profit fall and the tough economy. “Any company has to run for cover and shore up its core business in times of need. We just accept that and thank them for what they tried to achieve.”
On announcing its full-year financial result recently, Renaissance said it was discontinuing higher risk areas of its business, including Renaissance Indemnity. It remains a reseller of Indatasure, with about seven others in New Zealand.
Indatasure allows online backup of data, backed by an insurance policy that gives companies a predetermined amount of money if backed up data can’t be retrieved. It is underwritten here by QBE Insurance, with software developed by Auckland-based Engini.
Hodgkiss says Engini has been a partner for five years and has now been brought into the Indatasure patent holder group.
Hodgkiss says only about 12 resellers will be needed for Indatasure, because it is supported in New Zealand by some large firms which provide nationwide market coverage.
Indatasure is offered in three other countries: the US, Great Britain and Australia. However, the patent covers the US and Canada, the EU and most Asia Pacific countries, says Hodgkiss.