Well one thing is certain, insurance companies will be doing away with district and regional managers. That is a layer of cream that insurance companies can save simply by doing away with them. Agents yes, perhaps only 10% will exist in 10 years….managers, better have a Plan B ready.
Wrong because grocery stores tried to do this whole “peopleless” system. However, at a grocery store you actually get something in return other than a piece of paper saying “Your Covered”.
Then again, when the “Barter” system went away. I bet people were saying I will never trade my pig, cow, chicken, Corn, beans, Etc … for a piece of paper with a number on it. =-(
check out the price of protein may not be a bad deal! :)
March 2, 2015 at 10:21 am
Not so fast says:
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David, I have to disagree with you on doing away with managers, etc. I see those positions only growing in importance in the future. I feel the position needs an overhaul to be true consultants but when you think of expense there isn’t much savings there.
You sound like a manager convincing yourself of your relevance. Some of these managers are making in excess of $500k-$1 million a year. True consultants yes, but only with a $125k year salary and a cubicle. The days of $500+ a year salaries are quickly eroding. I would challenge you to find one manager making more today than they did 3 years ago.
I can see where this will appeal to price shoppers. From what I see in my agency, price shoppers are among the worse drivers. Have an accident or ticket and rates go up, rates go up time to shop for another company. Hello Google, cheap rates until some data comes in. The difference I think is that their rates will go up immediately and not wait for renewal. People who pay a little more for an agent are paying for the advisor part that we provide. Can’t get that online or via your email provider. At this point I am not concerned about Google taking business away from me. Maybe down the road but then it will time to retire anyway!
Advice from my insurance agent? Come now!!! I’ve never gotten more than here’s your policy and here’s what it costs. The commission is so low, why waste time. Besides, if a problem does arise, the producer is likely to have moved on, selling shoes or something. The principle of the agency will just blow you off, saying it’s the companies fault.
When I started in this bus I was told if they are complaining loudly about their current agent there is a good chance they will about you in the future as well.
Pretty much true.
Caveat emptor to those buying non agent – it’s a free country………
I have seen honest, hard-working, responsible drivers across many sectors switch to direct carriers to save a buck – even those who could afford to pay double – so there is no lumping the direct buyers into a single box. Google has something there. It means we’ll be working harder but we’re not going away.
Google will not be a carrier, their system is a comparison rater. The carriers that agents are selling are participating in this system. Its basically a comparative rater! When and If google establishes their own carrier that would be a bigger impact. These companies are going to be shooting themselves in the foot… Google would be able to see all their rates, the companies that for ages tell you to sell them on quality are going after the INSURANCE AS A commodity.
There are 2 sides to this coin. Drive on a major interstate at the speed limit. You get passed by cars way more often than you pass cars. If google starts tracking all of our driving habits, many will be paying more. I am a good driver, but going 60 – 65 on a long drive, I don’t think so. And, how many people want google tracking their every move?
1) The vast majority of drivers that I know and have seen don’t want their carrier to know how/when/where they really drive.
2) For a country afraid of Big Brother imagine the privacy concerns the first time that a law enforcement agency subpoenas a black box in the car, people will go crazy.
3) It will be difficult to utilize in California with the current rating and regulatory structure.
4) There will be more competition, but independent agents aren’t going anywhere.
A company in CA is already utilizing a system like this. You pay by the mile. You have a base rate then per mile. It’s a GPS tracking system that records your miles, time of day, speed, etc. with an app that shows all in real time. They’re now taking Uber drivers. When an Uber driver gets a call their insurance stops and Ubers picks up until passenger is dropped off all done via an app. They’re system doesn’t record how you drive just where you drive and miles. Actually their app will tell you all kinds of info from how well your car is running to street sweeping days if you in a big city.
Round your accounts out, it seems progressive has figured this is the way to retain business, as well as obviously write more business. Fortunately for local agencies. They are currently way over priced in my area at least. However I am sure this will change when they start getting other competitors out there.
You should all be afraid of Progressive or Geico not Google. As Google will buy progressive or Geico in the next 2-4 years. When this happens … Then you will see swindling in your personal books.
Rechelle – you are exactly correct that Google won’t be able to buy GEICO, but your statement of why is a little off. Berkshire Hathaway is 4th on the Fortune 500 list and they own 100% of GEICO. So GEICO is not a Fortune 500 company. Although, if they were independent, they might make the list on their own merit.
Warren has a price in his head for every asset in his portfolio. When Google or anyone else names it, it’s gone. It’s not inconceiveable that Google could name it at some point.
Called my agent the other day and guess what? He answered, knew me and took care of my policy change. I didn’t have to punch 5 different numbers, listen to five different messages or hear everything again so I could then guess at the best option. I don’t have to plug anything into my car or live with an electronic backseat driver. These choices may go away but if they do I hope it is long after I’ve passed.
Very intrusive. A lot of stress knowing your insurance company is watching your every move and willing to charge you extra. Wonder how many people will go for it. Not many I presume.
I have progressive and Safeco which love to plug into your vehicle. My customers say no. Next they’ll want to put a camera in your bedroom to know how much to charge for birth control..
Millions of people are tracked all day, everyday through the use of one personal electronic device or another. The trick is to make the overall benefit palatable to the general public so they perceive the invasion of privacy as a beneficial trade off.
“In the midst of chaos, there is also opportunity”, Sun Tzu, The Art of War.
To be sure, at first glance, using an individual’s driving data to directly rate a driver’s insurance policy may seem very “Big Brother”, the virtual equivalent of having an underwriter in the vehicle. If such a system were automated, it could put insurance agents out of business… but would it be profitable? The underwriter in the right seat doesn’t have a relationship with the insured and actually represents the worst possible scenario from a loss control perspective. An agent provided with the same information, through a virtual ride along, becomes an agent of change and creates value from the data. Real risk insights begins when agents bring domain expertise to a body of data.
The reality of telematics data collected by Google or OnStar, any data collected cannot be analyzed on the fly, it takes time; and more importantly it takes context (including understanding the driven environment such as real-time traffic congestion or weather factors). Experience has shown driver feedback needs to be metered and appropriately delivered; drivers will tune-out nagging alarms or beeps. Over the course of the policy period positive response to the feedback of course results in more accurate pricing, and some form of credit or additional endorsement to reward the positive behavior change.
In the inevitable event of usage based insurance policy pricing in our shared economy, the likelihood exists insurance companies will move towards a portable scoring system, similar to the credit score that secures the privacy of individual transactions while revealing the overall financial risk profile of the individual or business. Just as most people know what their credit score means, for auto insurance something like the FAIR™ Score, a safe driving index developed by ATG Risk Solutions (www.atgrisk.com) would protect the individual’s privacy yet reward (or penalize) over a policy period. Good drivers are rewarded with lower premiums and by default, drivers who present more risk, will pay more. Ultimately by all measures this approach provides a much fairer
The key to this Pay As You Drive type of usage-based insurance system will be competition between the forces of Big Data (Google) and the relationship focused insurance companies. The result will be both good for society and for the individual. Direct and transparent pricing per-mile or per-minute-of-driving avoids rebates, encourages competition and incentivizes opportunities to use alternative transportation thus increasing the road capacity – all while protecting the vehicle owner’s privacy.
Far from being frightening, data-driven policy pricing processed thru a neutral clearinghouse provides an exciting opportunity for agents to use big data to build better, trust-based business relationships with their customers. Of course, some will have initial concerns about the data collected. This is where agents can maximize their impact and value. Far from losing their livelihoods to a data-crunching machine, agents will be a front line guardian working to help their customers understand that their data is secure, educating the users on the impact of the scores they generate, advocating for safer driving behaviors that can help save lives by improving driving scores, explain how customer privacy is protected when a claim is filed, and most importantly building confidence the data won’t be used to deny a claim. The present chaos around scores – even from Google creates an opportunity for the Agent’s to change the tactics and demonstrate the ability of a humanizing force to win in a world of Big Data.
I don’t know where this information is coming from. Google isn’t creating an insurance company. I haven’t seen one thing that says they are starting an insurance company. They are simply becoming an online agent.
I guess they can create their own company down the line, but that isn’t at all what’s happening today. This sounds like some random thoughts from a guy that heard Google and Insurance in the same sentence.
Agents should still be concerned, but not for any of the reasons he gave.
Why all of the hoopla and panic about Google selling insurance online? Through Google’s new affiliate, CoverHound, insurers have yet another mobile insurance vehicle to offer their usual QUOTES and RATES on their products and services. But how insurance savvy are the directors and officers of Google or CoverHound?
Secondly, what agents, brokers, and producers should be concerned about is Google’s Search Engine Optimization (SEO) dominance! In 2014, Google had a staggering 65%+ of the market share of ALL online searches with Bing and Yahoo trailing at 19.7% and 8%, respectively. These OLIGOPOLIES control over 93% of the online search market!
So what? Well, Google doesn’t have to sell insurance, since they only need you and others to “GOOGLE IT!” when it comes to ANY matter concerning or buying insurance. If CoverHound’s ads inundate the first 10 online pages on GOOGLE, Bing, and Yahoo, about any insurance products services, etc., who stands to lose more when customers attention span is less than 4 seconds to find what they are looking for online. Also, who stands to lose more when customers want to cut out the so-called middleman (AGENTS, BROKERS, and PRODUCERS) to deal directly with these online insurers?
But the likes of CoverHound, CompareNow.com, and other typical quote and rating services will never create a total disadvantage with auto drivers in California. In California, drivers can now compare the ACTUAL PHYSICAL auto insurance policy from over 130 insurers online, INCLUDING the comparison of several basic uncommonly known monetary benefits and features from these insurers within two (2) MINUTES or less. No questions to answer or forms to fill out and unlike the CoverHound arrangement with its panel of insurers, this new California service, Insurance Snoopers, Inc. (ISI) IS NOT COMPENSATED BY ANY INSURANCE COMPANY!
Ads from CoverHound-Google, CompareNow.com, Progressive’s Name Your Price Tool, Farmers University, and all others currently do not offer this level of insurance education and information from a claims perspective to customers or potential clients! The mobile insurance industry needs disruptive competitors to existing online direct writers or services like CoverHound-Google for agents, brokers, and producers to stay the course in convincing folks that they do a better job in getting folks to understand their policy.
Well one thing is certain, insurance companies will be doing away with district and regional managers. That is a layer of cream that insurance companies can save simply by doing away with them. Agents yes, perhaps only 10% will exist in 10 years….managers, better have a Plan B ready.
Wrong.
Says Agent B, HA!(get it, because Plan B)
Wrong because grocery stores tried to do this whole “peopleless” system. However, at a grocery store you actually get something in return other than a piece of paper saying “Your Covered”.
Then again, when the “Barter” system went away. I bet people were saying I will never trade my pig, cow, chicken, Corn, beans, Etc … for a piece of paper with a number on it. =-(
check out the price of protein may not be a bad deal! :)
David, I have to disagree with you on doing away with managers, etc. I see those positions only growing in importance in the future. I feel the position needs an overhaul to be true consultants but when you think of expense there isn’t much savings there.
You sound like a manager convincing yourself of your relevance. Some of these managers are making in excess of $500k-$1 million a year. True consultants yes, but only with a $125k year salary and a cubicle. The days of $500+ a year salaries are quickly eroding. I would challenge you to find one manager making more today than they did 3 years ago.
I can see where this will appeal to price shoppers. From what I see in my agency, price shoppers are among the worse drivers. Have an accident or ticket and rates go up, rates go up time to shop for another company. Hello Google, cheap rates until some data comes in. The difference I think is that their rates will go up immediately and not wait for renewal. People who pay a little more for an agent are paying for the advisor part that we provide. Can’t get that online or via your email provider. At this point I am not concerned about Google taking business away from me. Maybe down the road but then it will time to retire anyway!
Advice from my insurance agent? Come now!!! I’ve never gotten more than here’s your policy and here’s what it costs. The commission is so low, why waste time. Besides, if a problem does arise, the producer is likely to have moved on, selling shoes or something. The principle of the agency will just blow you off, saying it’s the companies fault.
Good one, paying for advice. LOL>
When I started in this bus I was told if they are complaining loudly about their current agent there is a good chance they will about you in the future as well.
Pretty much true.
Caveat emptor to those buying non agent – it’s a free country………
I have seen honest, hard-working, responsible drivers across many sectors switch to direct carriers to save a buck – even those who could afford to pay double – so there is no lumping the direct buyers into a single box. Google has something there. It means we’ll be working harder but we’re not going away.
Google will not be a carrier, their system is a comparison rater. The carriers that agents are selling are participating in this system. Its basically a comparative rater! When and If google establishes their own carrier that would be a bigger impact. These companies are going to be shooting themselves in the foot… Google would be able to see all their rates, the companies that for ages tell you to sell them on quality are going after the INSURANCE AS A commodity.
There are 2 sides to this coin. Drive on a major interstate at the speed limit. You get passed by cars way more often than you pass cars. If google starts tracking all of our driving habits, many will be paying more. I am a good driver, but going 60 – 65 on a long drive, I don’t think so. And, how many people want google tracking their every move?
That’s my concern, I don’t want to be tracked.
Four thoughts:
1) The vast majority of drivers that I know and have seen don’t want their carrier to know how/when/where they really drive.
2) For a country afraid of Big Brother imagine the privacy concerns the first time that a law enforcement agency subpoenas a black box in the car, people will go crazy.
3) It will be difficult to utilize in California with the current rating and regulatory structure.
4) There will be more competition, but independent agents aren’t going anywhere.
A company in CA is already utilizing a system like this. You pay by the mile. You have a base rate then per mile. It’s a GPS tracking system that records your miles, time of day, speed, etc. with an app that shows all in real time. They’re now taking Uber drivers. When an Uber driver gets a call their insurance stops and Ubers picks up until passenger is dropped off all done via an app. They’re system doesn’t record how you drive just where you drive and miles. Actually their app will tell you all kinds of info from how well your car is running to street sweeping days if you in a big city.
Round your accounts out, it seems progressive has figured this is the way to retain business, as well as obviously write more business. Fortunately for local agencies. They are currently way over priced in my area at least. However I am sure this will change when they start getting other competitors out there.
You should all be afraid of Progressive or Geico not Google. As Google will buy progressive or Geico in the next 2-4 years. When this happens … Then you will see swindling in your personal books.
I highly doubt that it will be Geico if they do buy out. Geico is a Fortune 500 Company with the financial backing of Berkshire Hathaway…not happening
Rechelle – you are exactly correct that Google won’t be able to buy GEICO, but your statement of why is a little off. Berkshire Hathaway is 4th on the Fortune 500 list and they own 100% of GEICO. So GEICO is not a Fortune 500 company. Although, if they were independent, they might make the list on their own merit.
Warren has a price in his head for every asset in his portfolio. When Google or anyone else names it, it’s gone. It’s not inconceiveable that Google could name it at some point.
Called my agent the other day and guess what? He answered, knew me and took care of my policy change. I didn’t have to punch 5 different numbers, listen to five different messages or hear everything again so I could then guess at the best option. I don’t have to plug anything into my car or live with an electronic backseat driver. These choices may go away but if they do I hope it is long after I’ve passed.
Very intrusive. A lot of stress knowing your insurance company is watching your every move and willing to charge you extra. Wonder how many people will go for it. Not many I presume.
I have progressive and Safeco which love to plug into your vehicle. My customers say no. Next they’ll want to put a camera in your bedroom to know how much to charge for birth control..
Millions of people are tracked all day, everyday through the use of one personal electronic device or another. The trick is to make the overall benefit palatable to the general public so they perceive the invasion of privacy as a beneficial trade off.
Nyet!
“In the midst of chaos, there is also opportunity”, Sun Tzu, The Art of War.
To be sure, at first glance, using an individual’s driving data to directly rate a driver’s insurance policy may seem very “Big Brother”, the virtual equivalent of having an underwriter in the vehicle. If such a system were automated, it could put insurance agents out of business… but would it be profitable? The underwriter in the right seat doesn’t have a relationship with the insured and actually represents the worst possible scenario from a loss control perspective. An agent provided with the same information, through a virtual ride along, becomes an agent of change and creates value from the data. Real risk insights begins when agents bring domain expertise to a body of data.
The reality of telematics data collected by Google or OnStar, any data collected cannot be analyzed on the fly, it takes time; and more importantly it takes context (including understanding the driven environment such as real-time traffic congestion or weather factors). Experience has shown driver feedback needs to be metered and appropriately delivered; drivers will tune-out nagging alarms or beeps. Over the course of the policy period positive response to the feedback of course results in more accurate pricing, and some form of credit or additional endorsement to reward the positive behavior change.
In the inevitable event of usage based insurance policy pricing in our shared economy, the likelihood exists insurance companies will move towards a portable scoring system, similar to the credit score that secures the privacy of individual transactions while revealing the overall financial risk profile of the individual or business. Just as most people know what their credit score means, for auto insurance something like the FAIR™ Score, a safe driving index developed by ATG Risk Solutions (www.atgrisk.com) would protect the individual’s privacy yet reward (or penalize) over a policy period. Good drivers are rewarded with lower premiums and by default, drivers who present more risk, will pay more. Ultimately by all measures this approach provides a much fairer
The key to this Pay As You Drive type of usage-based insurance system will be competition between the forces of Big Data (Google) and the relationship focused insurance companies. The result will be both good for society and for the individual. Direct and transparent pricing per-mile or per-minute-of-driving avoids rebates, encourages competition and incentivizes opportunities to use alternative transportation thus increasing the road capacity – all while protecting the vehicle owner’s privacy.
Far from being frightening, data-driven policy pricing processed thru a neutral clearinghouse provides an exciting opportunity for agents to use big data to build better, trust-based business relationships with their customers. Of course, some will have initial concerns about the data collected. This is where agents can maximize their impact and value. Far from losing their livelihoods to a data-crunching machine, agents will be a front line guardian working to help their customers understand that their data is secure, educating the users on the impact of the scores they generate, advocating for safer driving behaviors that can help save lives by improving driving scores, explain how customer privacy is protected when a claim is filed, and most importantly building confidence the data won’t be used to deny a claim. The present chaos around scores – even from Google creates an opportunity for the Agent’s to change the tactics and demonstrate the ability of a humanizing force to win in a world of Big Data.
I don’t know where this information is coming from. Google isn’t creating an insurance company. I haven’t seen one thing that says they are starting an insurance company. They are simply becoming an online agent.
I guess they can create their own company down the line, but that isn’t at all what’s happening today. This sounds like some random thoughts from a guy that heard Google and Insurance in the same sentence.
Agents should still be concerned, but not for any of the reasons he gave.
HOLD THE PHONE! Tim is RIGHT!
Why all of the hoopla and panic about Google selling insurance online? Through Google’s new affiliate, CoverHound, insurers have yet another mobile insurance vehicle to offer their usual QUOTES and RATES on their products and services. But how insurance savvy are the directors and officers of Google or CoverHound?
Secondly, what agents, brokers, and producers should be concerned about is Google’s Search Engine Optimization (SEO) dominance! In 2014, Google had a staggering 65%+ of the market share of ALL online searches with Bing and Yahoo trailing at 19.7% and 8%, respectively. These OLIGOPOLIES control over 93% of the online search market!
So what? Well, Google doesn’t have to sell insurance, since they only need you and others to “GOOGLE IT!” when it comes to ANY matter concerning or buying insurance. If CoverHound’s ads inundate the first 10 online pages on GOOGLE, Bing, and Yahoo, about any insurance products services, etc., who stands to lose more when customers attention span is less than 4 seconds to find what they are looking for online. Also, who stands to lose more when customers want to cut out the so-called middleman (AGENTS, BROKERS, and PRODUCERS) to deal directly with these online insurers?
But the likes of CoverHound, CompareNow.com, and other typical quote and rating services will never create a total disadvantage with auto drivers in California. In California, drivers can now compare the ACTUAL PHYSICAL auto insurance policy from over 130 insurers online, INCLUDING the comparison of several basic uncommonly known monetary benefits and features from these insurers within two (2) MINUTES or less. No questions to answer or forms to fill out and unlike the CoverHound arrangement with its panel of insurers, this new California service, Insurance Snoopers, Inc. (ISI) IS NOT COMPENSATED BY ANY INSURANCE COMPANY!
Ads from CoverHound-Google, CompareNow.com, Progressive’s Name Your Price Tool, Farmers University, and all others currently do not offer this level of insurance education and information from a claims perspective to customers or potential clients! The mobile insurance industry needs disruptive competitors to existing online direct writers or services like CoverHound-Google for agents, brokers, and producers to stay the course in convincing folks that they do a better job in getting folks to understand their policy.