Trade Me enters life insurance market

LifeDirect has been selling life and health insurance since 2005 and has 11 staff.

Trade Me chief executive Jon Macdonald said the move into insurance stacked up well. “Online health and life insurance will be a new revenue stream for us, but we think it’s a logical move into an industry adjacent to our existing portfolio.

“As New Zealanders continue to move more of their lives online, insurance is an area where it makes a lot of sense to shop around to get a good understanding of the choices available. We believe providing consumers with a single venue to compare insurance products easily and efficiently is sound, and aligns with Trade Me’s core purpose of connecting two parties to undertake a transaction.”

Macdonald said Trade Me had been impressed with LifeDirect’s smart approach and the acquisition demonstrated the online marketplace’s appetite for acquiring good businesses with lots of potential. “It’s a well-run business and has very good prospects. Like our other businesses, it’s primarily web-based, provides consumers with a useful service, and helps people make smart purchasing decisions.”