Broker to add five more insurers to eCar

Broking group Brightside is revamping its eLife business after a high volume of policy lapses in the second half of 2010.

“eLife continues to disappoint and experienced accelerated lapse rates in the second half of the year from leads purchased from internet based distributors,” the company said in a trading update. “This practice in now discontinued and the result for the year will include a material provision against potential future lapses. The business is now being developed through affinity referrers from a significantly lower cost base.”

Despite the troubles at eLife, however, Brightside expects its overall results for the year ended 31 December 2010 to be in line with expectations.

The company also announced that it had successfully launched the multi-insurer panel system for its eCar business. Three insurers are now live on eCar and Brightside said five more are in the pipeline.

Brightside said it traded “very strongly” during the second half of 2010, with the general insurance businesses producing profits ahead of the board's initial expectations.

Policy sales increased by 68%, and Brightside expects both eCar and eBike to make a positive contribution for the financial year of approximately £1m after the expected amortisation charge. The company acquired both units in July last year.

The amount of premium finance loans funded by Brightside increased by 125%. with an increasing margin in 2010 and deferred income at 31 December 2010 increased by £2m year on year. The overall value of loans increased 17%.

Instructions to Brightside’s medical reporting business increased by 30% and leads generated internally from the broker’s marketing operation increased by 112%.

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