iSelect diversifies ahead of float
Insurance comparison site iSelect is moving aggressively into new business areas such as broadband and utilities as the company seeks to diversify its revenue sources before its listing on the Australian Securities Exchange this month.
Chief executive Matt McCann told BusinessDay the company wanted to become a one-stop shop for consumers to compare deals and products that hit home budgets on a recurring basis.
At the moment it generates about 80 per cent of revenue from online comparisons in health insurance, although life and car insurance represent a growing proportion of sales.
"Consumers are starting to come to the site for a lot more than private health insurance," he said. "It is the beginning of building a network where consumers can come and get that advice they need for household budget items."
Mr McCann said the company's diversification strategy showed early signs of success.
"Newer units [household utilities and financial] have gone from being loss makers in financial year 2012 through to profitable segments in our calendar year 2013," he said.
Although the company commands about 15 per cent of new insurance policy sales, it has an uneasy relationship with Medibank Private and Bupa.
Medibank Private managing director George Savvides recently accused comparison sites of increasing the cost of insurance policies for consumers.
Mr McCann rebuffed suggestions of a dispute with Medibank Private or Bupa, characterising the comments as a "different view" on where the costs are in the industry.