Internet bancassurer Egg is hoping to crack the £6bn motor insurance market with the launch of its insurance intermediary Egg Insure on the web tomorrow (Friday, August 18).
The internet site will boast a panel of nine top insurers, including Allianz Cornhill, Groupama, Highway, Norwich Union, the Prudential, Royal & SunAlliance and Equity Red Star, the motor insurance syndicate of Cox.
All will offer standardised motor policies with the same terms and conditions, but will compete on price.
Alistair Milne, managing director of Egg Intermediation, said it aims to offer a competitive one-stop shop. Its target is to win at least 35,000 new policyholders by the end of 2000.
“Egg Insure will take the stress out of choosing, buying, renewing and claiming, with a service that is free of small print and jargon.”
Milne admits Egg Insure's entry into the £6bn motor insurance market could not have been timed better, as rising rates encourage more consumers to shop around for a good deal on premiums. A source close to the company said research has shown eight in ten of Egg Insure's quotes are cheaper than its closest direct rival.
Customers will be able to obtain a quick quote in around ten seconds, or the five cheapest quotes in as many minutes, and cover will become valid as soon as it is bought online.
As an added attraction, Egg Insure will refund the difference plus £1 if its premiums are beaten by a customer's existing renewal notice.
Egg Intermediation said it aims to combat concerns over the security of net-based financial transactions by incorporating tough safeguards.
Egg Insure's quotation system is provided by Lloyd's insurer Cox, which is also assisting with third-party administration services. Personal incident managers will oversee claims from start to finish.
Egg Insure is set to publish its first results in October.
The internet bancassurer, which has won a large following for its web banking, plans to extend its range of insurance products to include household and travel later in 2000.