Google to Sell Insurance

[VolAgent]

I do think they are max'd or seeing very little growth. With all the money they spend on advertising, crappy retention and you know they have loss ratio issues since most their clients are crap on preferred.

Not everyone is willing to buy on the phone or internet, and not everyone is willing to be the next "up" at a call center, whether for sales or service.

Personally, I feel that GEICO, Progressive, and all the direct sub-standard carriers have more to fear from Amazon and Google than agents who focus on preferred business.

It gets harped on a lot, but it really is about value while being competitive on price.

 

[FL P&C Broker]

Not everyone is willing to buy on the phone or internet, and not everyone is willing to be the next "up" at a call center, whether for sales or service.

Personally, I feel that GEICO, Progressive, and all the direct sub-standard carriers have more to fear from Amazon and Google than agents who focus on preferred business.

It gets harped on a lot, but it really is about value while being competitive on price.

^exactly what he said. I don't want the customer who carries 10/20. I want the family who wants 250/500. Has a nice home....probably has flood, maybe an umbrella, maybe a couple rental properties, etc

 

[cadylou]

sadly, I think I agree with you. I don't think agencies will go away tomorrow, but over the next 5-10 years I think a personal lines agent will be a dinosaur.

This is different than buying online from GEICO or Progressive. Google is acting as an independent agency. Also, they know more about us from all their data than we probably know ourselves. I don't know about you, I would safe 1/2 our clients probably have a Gmail account... which I am sure Google collects data from.

The really sad thing is the carriers we have worked so hard for could care less about us agents. They tell us how important we are, but at the end of the day, they stab us in the back and work w/ Wal-Mart, Google, etc.

If I continue to think about this stuff, I probably will start drinking more...If you are an agency and you don't think this is a legit threat to our livelihood, you are in major denial!

Already drinking . . . .

 

[djs]

I do think they are max'd or seeing very little growth. With all the money they spend on advertising, crappy retention and you know they have loss ratio issues since most their clients are crap on preferred.

Actually, Geico's combined ratios are amazing. Not paying agents helps them a lot.


Their combined ratio in 2013 was 93.7, which was better then State Farm, Allstate or Progressive. For the record, Progressive was close at 94.6

I haven't seen 2014 ratios yet, but if you think the Geico model isn't working, you aren't paying attention. This means agents need to rethink and adapt their business model, not bury their head in the sand.

I see agencies having to get a bit bigger and move to hybrid business models. Fewer people want to come into the office, though some always will. More want to deal via email, self service, automation, on their own schedule, but still have the opportunity to know they can call if they need to.

You are going to have to have an online presence, allow for self quoting, allow change requests to be made online, etc. Think about it now, or the market you are looking at will continue to shrink. It will always be there, but it will (and already is) contract you into oblivion over the next few years.

Dan

 

[plewi003]

Who cares? They will stink it up just like Progressive and Geico. These online, and 800 numbers can never build relationships. The agent will always survive as long as the agency model is built on doing what is best for the client.

 

[scooter33]

Who cares? They will stink it up just like Progressive and Geico. These online, and 800 numbers can never build relationships. The agent will always survive as long as the agency model is built on doing what is best for the client.

Your probably right. We should not feel threaten, no big deal Google can eliminate us on their searches for local insurance agent or they work with the same carriers we do, Or potential rates are discounted through Google or they can target market to only the preferred market based on their data collect over the years.

You are right, we should have nothing to worry about.

 

[plewi003]

I'm not losing sleep over it. I just see it as another way to differentiate from the competition.

 

[scooter33]

I'm not losing sleep over it. I just see it as another way to differentiate from the competition.

I am not losing sleep over it as well. However, if you think Google, Amazon and others will not significantly impact your business, you are smoking the good stuff!

 

[AJentMiller]

Yep, My wife figured out what I got her for Christmas by looking at the ads that came up on unrelated websites.

Now that's remarkable.

-MillerLIFE

 

[dorado]

Monopoly!!!