New Directions and New Process

My Succession Planning at KSL Insurance

….2018 was my 48th year in the insurance industry. Other milestones included:

  • I turned 65 in May 2018.
  • I achieved a 3 year clearance from my bladder cancer concerns – I am now out to a six-month surveillance program only.
  • In September 2017 I closed the claims audit business to new claims. Through 2018 we have “run off” the majority of the outstanding claims.
  • Concurrently I have refocussed the business on its core activity “Life Insurance Auditing”.
  • I finalised my business succession plan.

New Ownership Structure

At the start of 2018, I finally conceded that I was no longer immortal and that I had an obligation to my loyal and valued clients to develop a long term continuation strategy. I commenced in earnest the development of a business succession plan.
I explored several options, from employing a successor, bringing in a younger partner, through to an outright sale. My personal desire was to retain an active involvement within the industry and preferably within the KSL business so that I was able to continue to service my existing clients as I do not intend to retire.

Introducing the Maurice Trapp Group

An outright sale was not my preferred option but was looming as the only option prior to being approached in September by the Maurice Trapp Group, a significant North Island based Insurance Brokerage, who were looking to expand their current South Island operation.
After an appropriate diligence process, I am delighted to advise you that I have sold 70% of my interests in KSL Insurance to the Maurice Trapp Group (Canterbury) Limited. The only change within KSL will be to the shareholding and management at a governance level. The KSL Insurance Limited name and business will continue in every other respect as is.  Brian Seque and I will remain as the principal advisors in the new structure. Sharon Empson will continue in her current role as office administrator and external director Jack Radford will remain as a director in the restructured business. Jack has recently retired as Dean of the Accounting Valuation and Economics Department at Lincoln University.

My Ongoing Management Involvement

My one condition of the sell down was that I wanted no management role. I was happy to act as a consultant to the firm but my focus for future involvement will be to work with my existing clients, developing new business and providing Insurance Audits to families and business owners.
Longer term, the enlarged company will be looking to integrate further agents and agencies into the KSL business. From a client perspective this provides long term certainty that you will continue to receive the professional advice and service that you have always obtained from your involvement with KSL over the past 38 years. We will keep you regularly updated as the new structure evolves. We will remain in the existing offices and all other services will remain the same.

My New Role

My new role will allow me to do what I love in my twilight years; being an Insurance Auditor and advise, match and place clients risk management needs with Insurers products that will meet their long term financial and risk management objectives. The earthquake sequence has shown us the “good the bad and the ugly” of Insurance from both a company and a policy perspective. As I have said many times over:
“Everybody owns Insurance but until a claim occurs most do not know what their policy covers, or how their Insurer will perform”
The fine print becomes the reality at claim time. You need to know what that will look like before the claim occurs and how it will impact financially on you and your family.

New Process

I have developed a new “Pre-claims Assessment” process. I will be offering clients a ‘no cost, no obligation’ meeting to share my claims audit experience with you and describe what will happen in the event that you, or your spouse or one of your children, or a business partner suffers from a partial and or total and permanent disablement, a trauma event such as a cancer, stroke or heart attack, or is off work through accident or illness and suffers a loss of earnings, or dies. This will be based on the facts you provide from my simple questionnaire that I will send prior to the meeting.
This “Pre-claims Assessment” will identify for you the financial impacts and outcomes from being inappropriately insured.

Real Life Case Study

The Value of a Life Insurance Audit

Recently I was contacted by a client now aged 48 whom I had negotiated a rebuild for. At the time I accepted the appointment to audit his earthquake claim (in 2014) he was currently reviewing his insurance program with an adviser. I audited the insurances and proposal being recommended and advised the client that the products and covers were inappropriate for his current circumstances (mortgage, wife, two teenage children and a toddler). In October 2018 the client contacted me after undergoing investigations resulting from a sore shoulder. He advised that he was going into hospital for surgery for a suspected cancerous tumor. The pathology after surgery confirmed as cancer.
When he rang me, he was unaware of what his insurance program entailed.
I advised him that:

  • On surviving 14 days after the diagnosis from the surgery, he would receive $210,000 in a “stand-alone” Cancer Trauma benefit.  (Now Paid)
  • If he was going to be off work for more than 90 days he would receive until he is 70 or until he is able to return to full-time work, 75% of his current monthly income, inflation adjusted.
  • If he ultimately died, his wife and family would receive a further $1.1 million dollars of life insurance proceeds.

The relief in his voice on hearing this news makes my audit role the most satisfying part of my job. Had he not undergone my Audit process and retained the existing contracts and advice, he would have received $104,000 of “accelerated” trauma insurance (accelerated means that on payment the life cover reduces by the payment amount) and the $334,000 of life insurance would have reduced to $230,000. There was no income protection benefit.

This is a typical example and is valid reason why, for peace of mind, you should immediately review your current situation.

Ongoing Reviews

We recognise that times and circumstances for most have changed and it is my intention to recommence our peer review program.

From the information gathered from each client interview, Jack, Brian and I will review your information, and provide a collaborative recommendation based on the pre-claims assessment model. We will present in documented form, our recommendations for retention, alteration or change.

Jack will consider each case from a financial management perspective and Kevin and Brian will consider each case from an insurance claims, product and company perspective.

This model was the basis for the success of KSL Insurance prior to the earthquake sequence and will be reinstated immediately.

I look forward to undertaking a peer review Audit of your current situation.

Please email me at for a suitable appointment time. We will send you an information update memorandum for you to complete together with a disclosure authority to contact the various insurers to be able to complete the initial pre claim assessment.

Regards and best wishes for a prosperous 2019
Kevin Seque