I recently received a piece of
direct mail from my personal insurance provider, which is a major carrier,
trying to solicit my business insurance. After some digging I found that most
carriers are now targeting consumers to buy commercial insurance direct and
online—eliminating the independent insurance agents all together. Some of the
big carriers offer quotes on their website while others refer you to one of
their agents or a call center.
I got curious, how many business
owners would actually consider purchasing their commercial insurance coverage
direct and why?
After some research I found a
study done by Deloitte in July 2013.
Of 751 respondents:
- 51% said they are
very likely or somewhat likely going to purchase business insurance online
directly from the insurer.
- 49% of respondents
said they were not likely going to buy online or direct from the carrier.
- Of the 51% that
would purchase direct and online, ¼ of the individuals would expect a
discount of 10% or less and 1/3 of the individuals would expect a discount
between 11% and 15%.
- The most popular
line of service to be purchased online, of the respondents, is 67% general
liability.
With the sudden interest in
purchasing commercial insurance direct and online what are your thoughts for
the industry? Will it affect independent insurance agents? Will consumers
purchase online?
Below is the letter I received in the mail.
