Esure, the direct insurer started by Direct Line founder Peter Wood, is to launch into the broker market.
The decision to launch into broker comes just weeks after Wood announced his intention to buy aggregator Gocompare to beef up the business before flotation.
Former Capita strategic partnerships director Jon Morrell has been appointed to spearhead the business, called Esure Broker.
Morrell will select an insurer panel for the venture.
Directors Stuart Vann, Esure chief operating officer, and finance director Andrew Whitehouse will join the business, according to Companies House files.
The launch into broker will help the company diversify itself in preparation for the flotation.
Esure is set to float from 2014 afterwards, with chief executive Peter Wood aiming for a £2bn initial public offering.
Vann said in a statement: “The market has undergone a seismic shift in recent years with the growth of price comparison. We embraced that change and we are now ready to complete Esure’s offering with a broker proposition. Brand strength is a major factor in a fickle market and we have both Esure and the leading general insurance female-focused brand in Sheilas’ Wheels.
"This venture will enable us to bring cover to a wider range of customers than our underwriting appetite can currently service. Jon is key to this project and we will be looking to him to contribute to a new era for Esure proving that we are much more than a simple direct player. Our underwriting caution has stood us in good stead for 10 years but opportunity is hard won and we do not intend to waste it.”
Esure already owns a 50% interest in Gocompare, but Wood wants to buyout his partner and Gocompare chief executive Hayley Parsons.
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