This is the type of business that investors can easily get a grasp about its quality merely through observation as a consumer. What I noticed when using their sites was the absence of a number of insurers from the comparisons, and the prevalence of their preferred partners. As a consumer, am I really seeing a good offer on an insurance premium, or am I getting pushed the product the maximises the commission for iSelect? In a similar way to mortgage brokers profiteering from selling the largest loans to consumers, iSelect have an inherent conflict of interest between supplier and customer.
It's a flawed business model, and a far cry from quality online businesses such as Carsales or Seek where a network effect of more participants means a better experience through deeper markets.
ISU Price at posting:
49.5¢ Sentiment: None Disclosure: Not Held
