According to the French daily Les Echos, French mutual companies regrouped under the name Covéa, which includes GMF, MMA and MAAF, will soon strengthen its foothold in the UK. After the purchase of Provident Insurance, the group is working on the launch of a new comparison website. Even if the project seems to be well on its way, the final decision will be made by the end of the year. The comparison website, if launched, will be based in Wales, and should be operational by 2012. Covéa is already present in the UK through MMA and Swinton.
Christophe Bardet, UK coordinator for MMA in the UK, said : “We are insurers and distributors at the same time. It only makes sense for us to have a comparison site, knowing that 70% of new private insurance business is made through this”.
The French insurer has a firm intention of becoming part of the leaders. Cristophe Bardet announces an objective of 20 to 30 per cent of market share. He continues : “There are today 4 major actors, but market studies show that there is a place for others”. If they go there, they have no intention of having a walk on role.
Confused.com, part of Admiral Group, claims 24 per cent of the market, with a turnover of GBP 40 million for the first semester. To try and get a large piece of the pie, Covéa may hire Debra Williams, known for her work with Confused.com and Tesco Compare. Thus, if the project becomes reality, they would be ready to spend millions of pounds on advertising; the price to pay to be part of the top aggregators. Who are known to spend an average of GBP 30 million each year. Cristophe Bardet argues : “Comparison websites have become so important in the UK, that it is they who communicate and not the insurance companies.”
In France, Covea is trying to sell its comparison website Assurland (EUR 28 million turnover in 2010, 80 per cent market share). They were hoping to complete the sale by this summer but have yet to receive a satisfying offer.
