5 Factors Driving Distribution

image: StockMonkeys.com

Insurance Networking News recently posted “5 Factors Driving Insurance Distribution to Digital“. It’s a good, quick summary of the following points:

  1. Increased smartphone usage and broadband access
  2. Consumers self-directing financial services transactions
  3. Carriers looking to maximize consumer reach
  4. Increased number of online purchase options for P&C insurance
  5. Increased VC interest in firms attempting to alter P&C distribution

I invite you to read that post and then come back to this one. Then I’ll explain point by point how Comparity is well positioned to take advantage of this digital transformation of distribution. Or, if you want to skip to it:

Increased smartphone usage and broadband access

We were born digital. Everything we do is about using web and mobile technology to simplify the insurance shopping experience for everyone involved; consumers, insurance agents, carriers, even mortgage bankers and realtors. Our online insurance application (we call it our “fact finder”) gives web and mobile savvy shoppers access 30 carriers in one place on whatever device they prefer. We deliver completed applications to our insurance agency partners who use our online portal to upload quotes and attach Evidence of Insurance. Our affiliates use our mobile-friendly site to send referrals in a couple of clicks and starting in May they’ll have their own app for iOS and Android. We keep everyone informed and synchronized throughout the process with notifications and personalized views.

Consumers self-directing financial services transactions

We know, both from industry reports and through our own experience serving 1500+ customers, that consumers expect to use the internet to research insurance.  We also know that lack of fulfillment beyond the browsing stage frustrates consumers who increasingly expect to do everything online in one seamless transaction. (This doesn’t mean consumers don’t want live advice from a professional, by the way.) That’s why exist. Through Comparity consumers can use one online application to access 30 carriers, view the top results in a side-by-side, “apples-to-apples” comparison, choose policies, meet their new agent, and download evidence of insurance. Help from an unbiased, license professional is always available when consumers want or need it.

Carriers looking to maximize consumer reach

We’ve written previously that finding and choosing insurance can seem a lot like the game Pachinko, especially if the shopper wants to compare options. Insurance carriers, perhaps more than any other industry, have specific attributes that define precisely the kinds of customers they do and do not want. Consumers have unique profiles of home ownership, employment, credit history, and many other distinguishing factors. So how do these two things line up, the unique customers who need insurance and the carriers who have specific requirements? Today, billions of dollars are thrown into advertising and lead buying so that carriers can cast the widest, deepest nets possible, sift through whatever comes in, keep what they want, and discard the rest. Maximizing consumer reach doesn’t just mean reaching the most people. Carriers who maximize reach will identify and connect with their ideal customers more efficiently and those carriers won’t waste time or money marketing to customers who aren’t a fit. Comparity is the realization of such a model. Carriers represented by our agency partners get access to quote 100% of our clients at no up-front cost. We have no incentive to favor any carrier, either. We simply help both parties find an ideal match as quickly and conveniently as possible.

Increased number of online purchase options for P&C insurance

We’re often asked how we reach consumers and how we can ever expect to compete with billion-dollar advertisers. The answer to the second question is that we don’t compete with billion-dollar advertisers and the reason is our answer to the first question. We market to mortgage lenders and realtors our online affiliate program for streamlining home insurance during the loan closing process. No one is compensated through this affiliation. We simply work with realtors and lenders through our technology to eliminate the considerable guesswork surrounding insurance in the typical home buying process. As a result we’re providing a new way to shop and buy insurance online through a robust channel that no one else is using.

Increased VC interest in firms attempting to alter P&C distribution

We’re “attempting to alter P&C distribution” and we’re raising money in our first angel round. We’re about halfway through it. As we’ve progressed we are meeting and interacting with more venture capital firms who are active in later funding rounds. We’re also connecting with more companies who have raised money in this space.

To find out more about how Comparity is transforming digital distrubtion of insurance contact Scott Hunter, President: scott.hunter@comparityins.com