Policy Master has suffered a setback after its deal with Interactive Investor International to develop a portal to offer online insurance quotes and sales was put on hold indefinitely.

Rob Quaile, product manager at Interactive Investor, said the project had been put on ice following a prioritisation of the company's projects.

Quaile said the project would be reviewed, possibly in six months time, but he added: “We haven't determined a go-live date.”

The Interactive Investor International site iii.co.uk had been concentrating on the development of the investment side of the business, Quaile said.

He added that insurance traffic through the site was being monitored and he said the site had added more insurance links such as the one to the Hiscox site.

Policy Master was not prepared to comment on the delay to the project. A spokeswoman said: “It's not appropriate for us to comment on any particular projects with customers.”

Policy Master announced the deal last April, stating that the project would be introduced in stages.

Motor insurance was due to go live in the second quarter of 2000, with household contents and buildings and term insurance to follow.

The system was meant to replace the current link to Screentrade, the online system provided by Policy Master's rival Misys.

Paul Charles, editor-in-chief of Screentrade, said: “We've been given no indication that we are coming off the site.

“From our point of view, it's all going very well, we're very happy with the relationship.”