One reason for these online insurance agencies popping up is because of Uber. Many have the thought, especially those not in the insurance industry, that if Uber can displace Taxi services, “I can replace the insurance agency.”
This is flawed thinking, first of all taxi’s services have been very inefficient have not not changed with technology when Uber stepped in. Furthermore Taxi companies were in cahoots with local officials on who is allowed to operate and have high uniformed price that did not encourage price competition. Lastly, a Taxi service is a very simple transaction. Insurance, most especially business insurance, is not a simple transaction.
You will see a number of issues here. Acquisition cost per customer will be very high because it will take huge advertising to win customers to do insurance online. Most won’t bite once they are on the platform, actually the average page views per visitor for online insurance agencies is very low and not reflective of one who is engaged in doing business with the site. This means they may go to the site, look at about two or so pages and then do nothing else. In addition, the people who do insurance online appear to have higher loss ratios. Esurance I believe had always had loss ratio issues. Lastly, people want agents to hold their hand, again this is not a one click transaction like Uber is, this is a transaction were people have questions.
It even get’s worse, these online startups are often started by those who have no insurance experience. They may have worked with other types of startups, not not insurance. They don’t understand the entire process, buyer behaviors and the many caveats of offering insurance. Most of these firms are dead on arrival or on life support. Some will survive, but they will not thrive.
Another signal of the strategic positioning of incumbents to grasp and engage with the emerging digital opportunity – trying to figure out where the small business landscape is heading. We can all see the story unfolding, but where we end up remains to be seen. Not as bold as the (very smart) move made by Travelers to acquire Simply Business, but telling nonetheless.
On a point of clarification, while Hiscox is very active in transforming the small business digital landscape – including providing tools to support traditional agents digitising their business – we are not financial investors in Coverhound or Next. Both are brands we have great respect for, and we partner with them as a carrier providing small business products.
starr insurance company is the worst I have ever seen
they only take your money and if something happen
they send u person to investigate with recorder to find out what happen months ago cause there respond so fast and if u tell him the person break the window they want see the window if he break bottle they want u keep the bottle even the shelf and cash register broken they want see like u are the person who did the wrong not u are the victim
and after months they send u statement with lowest price doesn’t equal the time u spent with them and they want notorious signature to pay u not even 10 percent of your loss
when I deny he said that he not responsible for my case anymore
what kind of insurance this
I will never advice any of my friend to waste there money for insurance just name nothing else
One reason for these online insurance agencies popping up is because of Uber. Many have the thought, especially those not in the insurance industry, that if Uber can displace Taxi services, “I can replace the insurance agency.”
This is flawed thinking, first of all taxi’s services have been very inefficient have not not changed with technology when Uber stepped in. Furthermore Taxi companies were in cahoots with local officials on who is allowed to operate and have high uniformed price that did not encourage price competition. Lastly, a Taxi service is a very simple transaction. Insurance, most especially business insurance, is not a simple transaction.
You will see a number of issues here. Acquisition cost per customer will be very high because it will take huge advertising to win customers to do insurance online. Most won’t bite once they are on the platform, actually the average page views per visitor for online insurance agencies is very low and not reflective of one who is engaged in doing business with the site. This means they may go to the site, look at about two or so pages and then do nothing else. In addition, the people who do insurance online appear to have higher loss ratios. Esurance I believe had always had loss ratio issues. Lastly, people want agents to hold their hand, again this is not a one click transaction like Uber is, this is a transaction were people have questions.
It even get’s worse, these online startups are often started by those who have no insurance experience. They may have worked with other types of startups, not not insurance. They don’t understand the entire process, buyer behaviors and the many caveats of offering insurance. Most of these firms are dead on arrival or on life support. Some will survive, but they will not thrive.
Another signal of the strategic positioning of incumbents to grasp and engage with the emerging digital opportunity – trying to figure out where the small business landscape is heading. We can all see the story unfolding, but where we end up remains to be seen. Not as bold as the (very smart) move made by Travelers to acquire Simply Business, but telling nonetheless.
On a point of clarification, while Hiscox is very active in transforming the small business digital landscape – including providing tools to support traditional agents digitising their business – we are not financial investors in Coverhound or Next. Both are brands we have great respect for, and we partner with them as a carrier providing small business products.
Kevin Kerridge
EVP – Hiscox Direct & Partnerships
kevin.kerridge@hiscox.com
starr insurance company is the worst I have ever seen
they only take your money and if something happen
they send u person to investigate with recorder to find out what happen months ago cause there respond so fast and if u tell him the person break the window they want see the window if he break bottle they want u keep the bottle even the shelf and cash register broken they want see like u are the person who did the wrong not u are the victim
and after months they send u statement with lowest price doesn’t equal the time u spent with them and they want notorious signature to pay u not even 10 percent of your loss
when I deny he said that he not responsible for my case anymore
what kind of insurance this
I will never advice any of my friend to waste there money for insurance just name nothing else