TradeMe partners with Tower to offer insurance
Trade Me builds up its financial services investments.
Trade Me [NZX: TME] has set up an insurance company in partnership with Tower [NZX: TWR].
After slower profit growth last year, Trade Me is investing in ventures separate from its core trading company, such as a $7.7 million spend on a 15% stake in peer-to-peer lender Harmoney in January.
“Trade Me has been making a few small but interesting moves in the financial services area, with the acquisition of LifeDirect, Paystation and a stake in Harmoney. This seemed like a natural extension of that activity," says Trade Me Insurance general manager Conor Sligo.
After a 12-month development period, Trade Me Insurance launched today, with a key aim of making home, contents and car insurance simpler.
“We’ve done things in a more modular way. The insurance industry has a tendency to go one size fits all, whereas we’ve given people the opportunity to pick and choose things that are useful for them,” says Mr Sligo.
The company is based online, with customer services available over the phone, email and live chat, reducing overheads and making the business more efficient, he says.
Trade Me’s three million members will also be given a 15% discount on all policies.
Mr Sligo is one of the founders of LifeDirect, a health and life insurance comparison website acquired by Trade Me in 2013.
LifeDirect’s original plan was to expand to compare house, car and contents insurance but when it met resistance from the industry, Mr Sligo says a “bolder” move was made to found a new insurance company with more transparency.
Trade Me shares have declined 6.7% over the past 12 months, last trading at $3.11. Tower shares have gained 26% over the same period, last at $2.15.
A television and digital advertising campaign for Trade Me Insurance will kick off this weekend.
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Chelsea Armitage
Fri, 14 Aug 2015
Fri, 14 Aug 2015
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TradeMe partners with Tower to offer insurance
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