Royal & Sun Alliance has appointed Fallon McElligott to handle the
launch of a new internet brand following a pitch against TBWA GGT Simons
Palmer and M&C Saatchi.
The account is understood to be worth more than pounds 6 million and
will involve both the initial launch and a supporting campaign to be
rolled out over the course of this year.
MGM, which holds a place on RSA’s roster of media agencies, is believed
to be handling media planning and buying.
There is some speculation that the unnamed site may attempt to extend
the company’s services beyond the insurance field following its tough
year in 1999.
First quarter operating profits fell by more than 25 per cent after the
group refused to cut prices in response to market conditions. A series
of natural disasters such as the Taiwan earthquake led to pounds 65
million of insurance losses in the fourth quarter.
Separately, RSA has introduced a revamp of its existing website,
New features include a workshop asking brokers to share their opinions
of online insurance services available on the web. Such feedback could
be incorporated into the launch of a new online brand.
RSA’s competitors, Legal & General and Axa, are planning the launch of
their own online services to compete with web pioneers such as Egg, the
Prudential’s internet brand, which successfully launched its own credit
card last year.
Egg this week announced plans to enter the current account market in
direct competition with the UK’s high-street banks.