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.

If you haven’t already noticed, the insurance industry is evolving rapidly and in more ways than one. Changes are happening with carriers, wholesalers, agents and consumers. The consumer has become tech savvy while the industry is lagging behind. There is a noticeable gap between the traditional distribution and the quickly evolving internet distribution model and what is made available to consumers. 

At CompleteMarkets we talk to a lot of insurance agents and financial advisors, that’s what we do. In those daily conversations we are consistently hearing “We have trouble staying relevant with our content for consumers.”

 

Well, I have one word—Online Newsletters.

 

There are numerous online newsletter providers out there and by all means, look at your options, but I’ll let you in on a little secrete ours are the best in the industry. J

 

Keeping your agency relevant with though provoking content? Check.

Consumers make decisions based on what you offer online. They don’t care about print ads or direct mailers any more, that’s all fire starter or immediate recycling. The consumers are going to websites to see what you have to offer. Is there educational content on your site? Are you putting real life situations in front of them?

 

Information is power, are you giving your clients and prospects power?

 

Don’t let me bore you, check out this link for more information: https://completemarkets.com/contentpage/insurancenewsletters/overview/

 

If you have any questions, let me know I’m happy to help.

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CHICAGO—May 12, 2014—There were 110 announced mergers and acquisitions of insurance agencies the US and Canada in the first four months of 2014, the strongest showing of any comparable period for at least seven years, OPTIS Partners’ new survey reveals.

The retail giant, Walmart, has expanded yet again. Walmart has teamed up with Autoinsurance.com and Tranzutary Insurance Solutions to offer “everyday low prices,” for auto insurance. 

Here are some important facts about how consumers use the internet to do business.

1. 79% Of Consumers Trust Online Reviews As Much As Personal Recommendations (2013 study)*
2. 85% of consumers say that they read online reviews for local businesses (up from 76% in 2012)*