Virgin Money is adding up life insurance to its current portfolio of motor vehicle insurance as the company revealed on Thursday that it is set to forge an alliance with Tower Australia Group Ltd by early 2011.

Virgin Money Australia managing director Matt Baxby said that the latest move by the company was largely influenced by recent researches that showed up to 95 percent of Australian families were not being protected by a comprehensive live insurance package.

In that light, Mr Baxby said that by collaborating with Tower Australia's unparalleled performance in the insurance industry, the Virgin brand would be able to deliver "a straight-talking, great-value product which is what people have come to expect from us."

Through the proposed partnership, Virgin Money is upbeat that its brand recall, product development approach, customer service and marketing expertise would be utilised to the hilt in offering the new insurance product.

On the other hand, being the country's fourth largest insurance company, the alliance would greatly benefit from Tower Australia's proven competence in the life market as it assumes the role of further product development for the partnership and providing for the necessary management skills to advance the two insurers business interests.

Tower Australia managing director Jim Minto acknowledged that a Virgin Money-branded insurance should be more attractive to particular sectors of the Australian community, stressing that the alliance is "a part of our overall plan to ensure greater accessibility of life insurance to everyday Australians and this also fits in with the company's growth strategy."

As of 1520 AEST on Thursday, Tower Australia shares were trading down by two cents at $2.31.