Comparative raters

[vvenugopal]

We have comparative rating websites for travel, hotels, rental cars etc for ordinary consumers and it works well (Expedia, Travelocity, Priceline etc). All the so called comparative raters in the insurance sector are absolute fakes, they make the customer enter a few pages of information and then go to a page which doesn't provide a decent quick quote. It leads them to another site to Carriers and make them re-enter more data, looks like a bait and switch approach. I am sure a true comparative rater for consumers will be end of business for ordinary agents just as travel and hotel industry has done. Are agents afraid of a real comparative rater, where consumers can directly deal with carriers and get a policy? It sounds it is bound to happen sooner or later. Comments?

 

[Markthebroker]

There are already a number out there.

For personal p&c, their ability will be limited as I suspect they will only be able to get all the information they need with the full co operation of the carriers. And as far as I know (feel free anyone out there to correct me) the large captives (Geico, Progressive, State Farm, Farmers) don't participate, so their ability is limited.

I would think the algorithm would be a bit more linear with term insurance, which is why you see more of it.

As far as commercial p&c, I'm not too concerned. First off commercial insurance is more dynamic and harder to set up a system like this, secondly, serious business people want an advisor/agent, not a website with a call center. Some of the smaller and more simple business policies can be written by the websites. As I am pretty well established, I'm not concerned. If I was new, though, I would be.

 

[marindependent]

LOL! Not at all worried. I am a mostly Personal Lines guy and I am not concerned. Yes some agents will be put out of business, but there is so much work out there for those that specialize its rediculous.

For the record I have yet to find a rater that really produces good prices, prices that include the needed endorsements that I use. They tend to be good a vanilla pricing, not neapolitan.

Raters are not able to get into either the local know how or the specific details of niches.

People that are left to buy coverage that they do not understand are not likely to make good purchase decisions. Ask yourself this one question: What percentage of consumers understand unisured motorist and its value?

For both rich and poor,it s a huge potential value in the event of an auto accident and does not cost a lot of money.

 

[Markthebroker]

I was just rereading the post, and wanted to address a few things.

We have comparative rating websites for travel, hotels, rental cars etc for ordinary consumers and it works well (Expedia, Travelocity, Priceline etc).

I used Expedia once. They completely screwed me over on a hotel. "works well" does not describe my experience.

I am sure a true comparative rater for consumers will be end of business for ordinary agents

I remember a lot of people were sure that we would be victims of global cooling in the 70's, or the hole in the ozone in the 90's. Elon Musk told us we would have robo taxis by the end of last year, and we've been waiting for flying cars for years. Don't hold your breath.

Are agents afraid of a real comparative rater, where consumers can directly deal with carriers and get a policy? It sounds it is bound to happen sooner or later. Comments?

To be clear, I am only afraid of 3 things. Hippies, midgets, and Kpop.