The major life assurance groups have initiated a strategic review of the operations of Assurelink, a company they jointly own that provides product information online to brokers.
Amid some doubt about the company's viability, the review comes as certain member groups assess whether they will continue to have an involvement in the not-for-profit venture.
Assurelink was established in 1993 to support the broker market for life and pension products. Up to 400 brokers are known to use its services.
The company is controlled by Eagle Star, Irish Life, Canada Life, New Ireland (Bank of Ireland), Standard Life, Friends First and Hibernian. While the departure of any one of its shareholders would weaken Assurelink, some of the life groups depend on it to provide them with an online service for dealing with brokers.
The review follows the termination at the start of last month of its OmniQuote service, the core product which provided comparable price quotations to brokers on the life products issued by its members.
Industry sources say it is open to question whether Assurelink can survive without such a quotation service, which is dependent on the flow of information from member groups. According to sources, the quality of the information provided varied. In a note recently posted on its own website, the company asked brokers to submit their suggestions for a revised online quotation system.
The termination of OmniQuote left only one service, OmniView, which provides an overview on one screen of the pension, investment and assurance policies that a customer may have with the life groups.
Responding to suggestions in some quarters that Eagle Star was preparing to surrender its shares in Assurelink, an Eagle Star spokeswoman said it was committed to support the service throughout 2007 while the review is taking place.
"We can't pre-empt the review and we're committed to support Assurelink while the review is underway," she said.
She went on to say that Eagle Star was committed to high standards in providing information online to brokers and customers.
"Accordingly, together with all the shareholders in Assurelink, we are involved in a review which from our point of view must result in Assurelink meeting the highest standards of excellence from brokers and their customers into the future."
