Trends reveal huge growth in online insurance purchases

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Trends reveal huge growth in online insurance purchases

Unread postby RatPak11 » Tue May 22, 2012 10:55 am

http://www.liveinsurancenews.com/trends ... es/853178/

Trends reveal huge growth in online insurance purchases
Written by:Chris Taylor
Written on:May 24, 2011

Last week, Allstate announced their acquisition of Esurance, the online auto insurance provider. The purchase was billed as an effort to expand Allstate’s online market, providing customers with more options and flexibility when purchasing coverage. There is another factor that may have contributed to the acquisition, according to a new report released by comScore, a global source of digital market intelligence.

The firm conducted a survey in the U.S. that suggests that the online market is becoming increasingly popular amongst consumers.

The survey shows that, of those participating, 20% of respondents purchase their auto insurance policies online. While 43% of respondents say they still purchase insurance from a local agent, which may soon change. In 2009, comScore conducted that same survey and found that 48% of respondents said it was unlikely for them to purchase coverage online. This year, however, that number has dwindled down to 22%.

Earlier this year, comScore reported that insurance aggregator sites were experiencing a huge influx of new customers. Many insurance companies around the country are making the move to boost the quality of their online services. Allstate is one among many that are looking to catch the incoming tide of digital consumers.

“Consumer preference and attitudes toward online insurance channels is growing,” says comScore’s Susan Kleinman. “These channels are being considered a better way to search for policies and engage with insurers. We expect to see a continuing shift toward these online platforms.”
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Re: Trends reveal huge growth in online insurance purchases

Unread postby RatPak11 » Tue May 22, 2012 10:58 am

http://www.liveinsurancenews.com/allsta ... et/853122/

Allstate invests heavily in online market
Written by:Stephen Vagus
Written on:May 19, 2011

Allstate has announced the acquisition of insurance giant Esurance as well as its subsidiary Answer Financial. Allstate will pay in excess of $1 billion for both. The move comes in an effort to capture a bigger portion of the online market. An increasing number of consumers are shopping for insurance policies online, making Esurance a popular medium for finding affordable coverage.

The massive insurance corporation has witnessed business in its personal lines dwindle of late. Allstate is looking to expand its service to online consumers, many of whom favor the ease of electronic purchase over dealing with agents. The purchase of Esurance will allow Allstate to compete with electronic insurance goliaths Progressive and Geico.

“Consumers today expect to have their basic needs met by insurance companies,” says Thomas J. Wilson, president and CEO of Allstate. Wilson insists that the company’s physical agencies perform remarkably well in the industry and that he wants to see that performance translated into the digital world. While Allstate has been attempting to expand their direct channel for some time, this is the first successful effort they have made toward that goal.

A number of Allstate agents are concerned that this means their positions with the company may be put at risk. If the Esurance initiative proves successful, agents are worried about becoming expendable. Time will tell whether their suspicions are accurate or not.

Esurance will continue to function in the same capacity as it has prior to its acquisition by Allstate.
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