Boston Agency Eyes ‘Next Generation’ of Insureds

What if a college student falls ill late in semester and needs to withdraw without getting any tuition refund? What if a child loses valuables in her school or accidentally causes damage?

Here comes insurance to the rescue.

Bill Suneson is co-founder and president of Next Generation Insurance Group, a Boston and Phoenix-based agency.

He said the college student and young adult market is huge and keeps growing. One of the company’s key affinity marketing partnerships is with Sallie Mae, a public company that manages $238 billion in education loans and administers $37 billion in 529 college savings plans. Sallie Mae, which has 23 million customers, is a minority investor in Next Generation Insurance.

Working with Sallie Mae, Next Generation Insurance helped create Sallie Mae Insurance Services. The agency’s tuition insurance product ranges from $239 to $599 with up to $50,000 of annual tuition protection. The renters’ product costs about $150. Its student protection plan provides emergency medical evacuation insurance, identity theft protection, computer repair and warranty protection. It also offers an alternative to school-sponsored health insurance for non-traditional students.

Suneson and his business partner, John Fees, started the agency in October 2008. “We are both veteran collegiate and affinity marketers and decided to focus the business on markets we understand,” he said. He has been a licensed insurance agent for 17 years. He has worked at JPMorgan Chase marketing student loans through affinity groups and as a broker on national affinity auto and home insurance programs.

The agency has 20 employees and is looking to grow. “The college and young adult market is growing substantially and attending college is evergreen,” Suneson said.

In the U.S., there are currently 19 million college students, including both full-time and non-traditional/part-time students. In 2012, there will be more students in college than ever before in history.

“I can tell you our new policy and premium numbers have grown over 100-percent year to year and we expect even greater growth again in 2012.”

Suneson said most of his competitors lack comprehensive solutions for young adults. He said he’s seeing a growing interest from insurers and other financial institutions in offering his tuition protection products as enhancements to their core products. The agency works with a number of insurers including Assurant, Markel Corp. and Fairmont Specialty.