In a deal that has taken many years to execute, online price comparison company iSelect (ASX: ISU) has finally secured an affiliate marketing deal to promote Bupa, Canstar’s ‘Outstanding Value Health Insurance’ National Award winner for 13 years running.
Given the public accolades won over the past decade as a household name across Australia, it’s understandable why Bupa did not need to pay for appearances on iSelect which only compares products of companies that it partners with.
“As Australia’s leading comparison marketplace for health insurance, we are pleased to welcome Bupa to our panel of health funds for the first time,” said iSelect CEO, Warren Hebard.
“Their addition further enhances our comparison service and provides our customers with even more choice. Expanding our range of providers is essential to ensure we remain Australia’s go to destination for comparing and saving across insurances, utilities and personal finance.”
By partnering with iSelect for their customer acquisition and affiliate marketing services, Bupa joins Australia’s nine major health insurers on the platform. By appearing on iSelect’s channels, Bupa also gains access to iSelect’s call centre services where they follow up price comparison searches with phone calls from their consultants which can then sell Bupa products. Fees are then payable to iSelect from Bupa for converted sales.
“We know people buy health insurance in different ways and this partnership means more customers can have access to Bupa products and gain peace of mind from our cover,” said Bupa Director of Domestic Health Insurance, Chris Carroll.
“We want to make health insurance as easy, convenient and accessible as possible, and partnering with iSelect ensures our policies are in front of people when they are looking to take out cover for themselves and their families.”
While iSelect were pioneers in the online price comparison industry a decade ago, advancements in direct marketing technology have substantially reduced their digital influence in recent years. Regulatory changes and the loss of travel insurance sales through the pandemic have impacted declining revenues while the Company has addressed this by adopting a leaner operating model.
For the half year ended 31 December 2020, iSelect reported a 12% decline in revenue, however earnings bounced back from pandemic losses to deliver $13.2m EBITDA.
iSelect has more than 1.9 million users on their price comparison platforms and has flagged its plans to expand their product comparison range beyond health insurance, energy deals and phone/internet plans. In January 2021, the Company added business loans and has intentions to add two new verticals soon.
Alfred Chan is an Analyst at Emerald Financial, specialising in ASX-listed small cap companies.
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