Update on the Fate of Insurancewide

OK, so we don’t have much of an update on this one. The flow of information has definitely clamped down from the lines into Insurancewide so there’s not much of an “insiders view”. But it’s ominous that Insurancewide hasn’t (to our knowledge) gone into administration and no purchase/investment of the company has been reported to the outside world.

The proposed date for Insurancewide to close (unless it was to attract the necessary investment/a buyer) was 31st August 2009. So now that we’re half way through October, what’s the score? They’ve not shut. The vast majority of their white label deals have jumped into the jaws of Beat That Quote. The VAT case still seems to stand (no further news from HMRC on that front). Their Peoples Choice charity joint venture with Equity (one of their shareholders) has removed the comparison tool and simply claims to be working on an improved website. And from what we understand, the employees have disbanded under something of a cloud.

So it would appear that they’re no longer trading. So then why are they not dissolved or why is there no announcement to inform the world of a sale. One thing is for sure – egos are likely to be at play. On the board of directors is one Neil Alan Utley. A prominent figure in insurance circles. Prolific, successful and some may say ruthless (not in a good way). But anyone who knows him will testify that he will always have his eyes set on bigger things, regardless of his current position.

And what of the other directors of Insurancewide? Their motives are likely to be related to any remaining vested interests or assets in the company for one scenario, hope for the future for the other scenario (which must have disbanded by now) or perhaps a little bit of pride. Then again, after all of this, you’d expect them to be itching to rid themselves of the insurance game once and for all …and Mr Utley and his band of Equity-merry-men.

Our guess is that this is falling onto Utley’s shoulders. His directorship record might provide the answer we search for:

• Trading Directorships 19
• Trading Shareholdings 10
• Insolvent/Pre-Dissolution Directorships 1
• Insolvent/Pre-Dissolution Shareholdings 1
• Dissolved Directorships 12
• Dissolved Shareholdings 0
• Previous Directorships 33
• Proprietorships 0

Could it be that Utley is desperate for the insolvent/pre-dissolution figure not to increase to 2. Perhaps the debt is so huge, their negotiations with creditors is dragging on and on. Perhaps they’re under delicate negotiations with a buyer and they can’t settle on a figure? Perhaps the directors are trying to pin something onto the other, resulting in the whole process being drawn out?

Who knows? You might. Feel free to share what you may know with the rest of the class…