Morgan's original website, Insurance4Me, offered first year premium discounts of 20% on Pinnacle Life cover. His new venture, Kiwi Discount Club, is offering members cash rebates of up to 50% of their first year's premiums on Sovereign life insurance and a 30% cash rebate on OnePath health cover.

Morgan said he was well aware his new venture would attract criticism from the advice community for his self-needs analysis approach, and he said he found the criticism ironic given the controversy around Partners Life taking business away from established insurers.

"It's a churning industry and I'm targeting new business, I'm not targeting existing business, but I guess some people are going to [switch]."

He said the concept behind Kiwi Discount Club was to utilise the cheaper online model with customers doing the needs analysis themselves, plus by building up a database of members he said he is able to negotiate better rates with the insurers.

"We are able to offer these cash rebates as we are rebating a percentage of the commission that the insurers pay us by way of a commission on new business submitted."

Morgan said he opted for Sovereign and OnePath as they were highly rated for life and health products and had greater name recognition.

Also he said Pinnacle Life didn't provide premium forecasts.

"With the other ones [Sovereign and OnePath] I know, I've got all their rates so I can see what the premiums will be in 20 years time based on their current rates."

He said that clients who sign up for the Kiwi Discount Club can opt for cover from other insurers, but consumers preferred one recommendation rather than multiple quotes.