What the CEO of Allstate thinks...

[marindependent]

When Allstate’s chief executive officer looks at potential growth opportunities for personal lines insurers, he sees an untapped part of the homeowners insurance market—customers that will buy home insurance online.

Speaking at the Bank of America U.S. Insurance Conference yesterday, Allstate Chair and CEO Thomas Wilson, who spends a lot of time talking about repricing and underwriting actions in auto insurance at investor conferences these days, devoted some of his remarks to homeowners instead.

“In the direct space, very few people sell homeowners,” Wilson said, referring to carriers using direct distribution channels to acquire customers rather than through agency channels. “It doesn’t make any sense to me. People buy houses on the Internet, right? They buy cars on the Internet. There’s really no reason why they shouldn’t buy homeowners on the Internet. Yet, right now very few people buy homeowners insurance on the Internet.”

More here

 

[Markthebroker]

Yeah, we'll see. A home is the largest investment most people will ever make. Sure, some people will be ok with buying insurance online, but how many is the question.

 

[Tahoe Ray]

Yeah, we'll see. A home is the largest investment most people will ever make. Sure, some people will be ok with buying insurance online, but how many is the question.

For now, it's best used as a stopgap to help you close on a property. One less thing to wait on.

If it's left up to them, the consumer is going to "uncheck boxes" that make their coverage more expensive, even if it makes it exponentially more valuable.

Until AI is there, very little will replace an agent taking all angles into consideration and helping a consumer properly evaluate their risks.

 

[marindependent]

For now, it's best used as a stopgap to help you close on a property.

I write more business from this reason than almost any other. So many busted home closes because it was "online" either for the insurance or the mortgage.

 

[Allen Trent]

Should definitely bet on his advice, he has been right so many times & has led Allstate from a once very respected company to one that very few people respect.

In a 14 year period from 2007 to 2020, it averaged less than 1% growth in revenues. Sold off its life insurance policyholders 12-18 months ago for very little & gave away its Annuity assets to a Private equity company. (or vice versa--either gave away Life & sold Annuity or gave away Annuity & sold Life)

This is the revenue growth of most recent 14 years---the real question might be "why is he still the CEO"---cant imagine any corporate plan in any of these years was looking at an average of less than 1% in annual revenue growth