Several huge corporations are trying to do what Google was, and with their marketing dollars will certainly grab some as yet undetermined % of the market, the Insurance Industry has consolidated tremendously over the last 30 years, the days of the Individual Agent are about gone, or at least, are only for the very dedicated independent individual agent; (Coverhound got 10% of their business from Google) But Insurance rates (prices to consumers) are regulated & approved by the State`s individual Departments of Insurance. so there still has to be profitability for all involved, and for each partner that is involved, profit has to be made, and every partner involved is taking profit from the other partner/s as well, with no increase in price compared to ca company with no partners: No state Insurance Department would, or even could raise rates, for someone based on having multiple business partners. Unless Coverhound is earning at least 10% more net profit by associating with Google, or Goggle supplied clients have a %10+ lower overhead acquisition cost, they are better off without it.
“Google’s presence caused worry of a massive market disruption, particularly among independent agents. A month before the announcement amid rumors of Google’s entry into the insurance business W.R. Berkley Corp. CEO William R. Berkley said every agent who sells personal auto coverage should ‘be afraid, be very afraid.'”
Funny, none of the knowledgeable agents I know, agents who, unlike these so-called “disrupters,” truly understand what this industry is all about, were particularly worried about Google’s venture as one of dozens of online comparative rating web sites. If you’re a policy peddler whose sales proposition rests almost exclusively on price, speed and “convenience,” then, yes, you should be afraid. Hopefully afraid enough to leverage your skills in another industry, say selling used CDs in eBay.
The insurance industry makes most other industries possible. It is not about a product. It is not about a service. It’s about a promise, a promise to help consumers and businesses identify and manage the risks they face. You can’t do that by enticing trusting, if gullible and sometimes lazy or ill-informed, people with claims you can quote their insurance in 15, 7 1/2, or 3 minutes (or the latest…10 seconds).
Let’s hope that Google returns to its core competencies and abandons being an accomplice to financially endangering the lives of innocent, misguided people.
For 150k had Google called my office and asked I would have let me them use our comparison rater tool called the “PLRater” which would’ve saved them a lot of money and time. Oh well.
Well Mel, the demise of the Independent Agent has been forecast for many years. We are still here. It was interesting that the article said they didn’t realize the complexity of Personal Auto. With the way it is going and how weird the market is with rate taking, it must be challenging for any system to give accurate rates for consumers.
It’s just a flesh wound for Google, but it’s heartening nonetheless to see an internet giant struggle to commodify insurance products.
Independent agents, rejoice. The enemy may have taken some of your market, but they could not take your distribution channel(with apologies to “Braveheart”).
Apparently, Google Geeks didn’t heed Captain Obvious on the complexity of Personal Auto.
Was the failure of ‘Googlists’ of prices due to over-simplifying insurer’s heterogeneous price-by-class structures, or by trying to capture most of their complexity? Regardless, the outcome was the same as for the Canadian IT firm that was hired to implement the ACA. Caveat Googlemptor.
Not to get political but Google just reminded me of Jeb Bush. You can be nice and have all the money in the world but at the end of the day it is people selling to people and most people still prefer dealing with people. Can’t change that Google.
Good ole Jeb. He burned through about $130 million of PAC money and couldn’t get any traction at all. When you don’t have a message that sells, you won’t go far.
Weird, Agent, because less than a month ago you predicted that every Republican but Bush would drop out or fade. Of course, when I pointed this out you didn’t reply, but I was downvoted a lot; this is also when many accused you of voting repeatedly.
Or, in other words, you are wrong as always, and I was right for questioning you.
Google will be back, they will be the driver of driverless cars. As the driver they will buy the insurance wholesale for .50 on the dollar and then pay a behemoth insurance company to adjust the claims under contract, they will eventually disrupt the market, just not by imitating what already exists.
Opinions on the future are like elbows and other body parts… everyone has them. Time will tell. For now, as others have said, time for some to partake in some humble pie…
they also believe Google would face the same obstacles they have been dealing with in getting shoppers to move beyond getting a quote and actually complete the buying process online. They say the challenge in online selling is not about search, which is Google’s strength, but about closing the deal.
Read it full in here : http://bitl.li/bH9w0
Several huge corporations are trying to do what Google was, and with their marketing dollars will certainly grab some as yet undetermined % of the market, the Insurance Industry has consolidated tremendously over the last 30 years, the days of the Individual Agent are about gone, or at least, are only for the very dedicated independent individual agent; (Coverhound got 10% of their business from Google) But Insurance rates (prices to consumers) are regulated & approved by the State`s individual Departments of Insurance. so there still has to be profitability for all involved, and for each partner that is involved, profit has to be made, and every partner involved is taking profit from the other partner/s as well, with no increase in price compared to ca company with no partners: No state Insurance Department would, or even could raise rates, for someone based on having multiple business partners. Unless Coverhound is earning at least 10% more net profit by associating with Google, or Goggle supplied clients have a %10+ lower overhead acquisition cost, they are better off without it.
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“Google’s presence caused worry of a massive market disruption, particularly among independent agents. A month before the announcement amid rumors of Google’s entry into the insurance business W.R. Berkley Corp. CEO William R. Berkley said every agent who sells personal auto coverage should ‘be afraid, be very afraid.'”
Funny, none of the knowledgeable agents I know, agents who, unlike these so-called “disrupters,” truly understand what this industry is all about, were particularly worried about Google’s venture as one of dozens of online comparative rating web sites. If you’re a policy peddler whose sales proposition rests almost exclusively on price, speed and “convenience,” then, yes, you should be afraid. Hopefully afraid enough to leverage your skills in another industry, say selling used CDs in eBay.
The insurance industry makes most other industries possible. It is not about a product. It is not about a service. It’s about a promise, a promise to help consumers and businesses identify and manage the risks they face. You can’t do that by enticing trusting, if gullible and sometimes lazy or ill-informed, people with claims you can quote their insurance in 15, 7 1/2, or 3 minutes (or the latest…10 seconds).
Let’s hope that Google returns to its core competencies and abandons being an accomplice to financially endangering the lives of innocent, misguided people.
For 150k had Google called my office and asked I would have let me them use our comparison rater tool called the “PLRater” which would’ve saved them a lot of money and time. Oh well.
I’m sure Google talked to Vertafore before choosing ITC, which I would agree was the better choice.
Well Mel, the demise of the Independent Agent has been forecast for many years. We are still here. It was interesting that the article said they didn’t realize the complexity of Personal Auto. With the way it is going and how weird the market is with rate taking, it must be challenging for any system to give accurate rates for consumers.
I guess Google didn’t reinvent insurance and eliminate independent agents after all. Humble Pie is being served.
It’s just a flesh wound for Google, but it’s heartening nonetheless to see an internet giant struggle to commodify insurance products.
Independent agents, rejoice. The enemy may have taken some of your market, but they could not take your distribution channel(with apologies to “Braveheart”).
Apparently, Google Geeks didn’t heed Captain Obvious on the complexity of Personal Auto.
Was the failure of ‘Googlists’ of prices due to over-simplifying insurer’s heterogeneous price-by-class structures, or by trying to capture most of their complexity? Regardless, the outcome was the same as for the Canadian IT firm that was hired to implement the ACA. Caveat Googlemptor.
They found they couldn’t ‘bottle up’ and sell, the stress of being an agent…
Not to get political but Google just reminded me of Jeb Bush. You can be nice and have all the money in the world but at the end of the day it is people selling to people and most people still prefer dealing with people. Can’t change that Google.
Good ole Jeb. He burned through about $130 million of PAC money and couldn’t get any traction at all. When you don’t have a message that sells, you won’t go far.
Weird, Agent, because less than a month ago you predicted that every Republican but Bush would drop out or fade. Of course, when I pointed this out you didn’t reply, but I was downvoted a lot; this is also when many accused you of voting repeatedly.
Or, in other words, you are wrong as always, and I was right for questioning you.
You have me confused with someone else since I thought Bush was a dufus RINO from the start. He proved it with every debate.
Google will be back, they will be the driver of driverless cars. As the driver they will buy the insurance wholesale for .50 on the dollar and then pay a behemoth insurance company to adjust the claims under contract, they will eventually disrupt the market, just not by imitating what already exists.
We will let them write all of their cars and the employees can ride in them to and from.
Opinions on the future are like elbows and other body parts… everyone has them. Time will tell. For now, as others have said, time for some to partake in some humble pie…
they also believe Google would face the same obstacles they have been dealing with in getting shoppers to move beyond getting a quote and actually complete the buying process online. They say the challenge in online selling is not about search, which is Google’s strength, but about closing the deal.
Read it full in here : http://bitl.li/bH9w0