Insurance giant to spend £40m on property Web site

Global insurance group CGU is to launch a £40m online property venture following its £20bn merger with Norwich Union.

assertahome.com will offer users access to an extensive property database, eventually covering up to 50 per cent of the UK market.

Over 3,000 estate agents have teamed up with CGU and Norwich Union on the venture.

assertahome.com will keep 180,000 properties on record and provide customers with 24-hour access to information and updates via telephone, email or mobile text messsaging. Customers can arrange mortgages and organise house moves on the site. Links to insurance providers, home specialists and interior designers will be added later this year.

According to Ashok Gupta, CEO of assertahome.com, the initial £40m investment will be spent over the next three years, at which point the site should be self-sustainable. Speaking to silicon.com, Gupta said the UK online property market was still at a nascent stage and that there was enormous opportunity for growth.

The service will target CGU and Norwich's existing insurance customers as well as seeking a new customer base.

Once the merger is finalised at the end of the month, CGU and Norwich Union will control 56 per cent of the company, with 30 per cent owned by estate agents and the remaining 14 per cent held by asserthome.com management and staff.

The companies are also finalising contractual details with two cable networks to provide an interactive digital television version of the service which will be unveiled in June.