[LTPC-discussions] Banks selling insurance, no need of agents.

Sat, 5 Jul 2003 19:30:51 EDT

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Below is part of an article from Plunkett Research regarding banks selling 
insurance, and eliminating insurance agents.  When did Progeny they see this 
trend coming?   You can get the full article at this link.  

Richard

<A HREF="http://www.plunkettresearch.com/finance/financial_insurance.htm">http://www.plunkettresearch.com/finance/financial_insurance.htm</A>

Banks and e-commerce are rapidly gaining market share in the sale of 
insurance, while the total share of insurance sold thorough traditional agents is 
dropping. In addition, direct marketing, including direct mail and other forms of 
advertising, continues to hold significant market share.

These trends will accelerate. For example, industry giant Allstate shook up 
its vast exclusive agent network in 1998 when it announced that it would begin 
selling insurance directly to consumers online and through call centers. 
Customers acquired online are later assigned to agents, who receive a smaller 
commission rate on e-commerce sales than the approximately 10% on sales generated 
by the agents themselves. While the shift may be hard on agents, Allstate has 
little choice if it is to compete effectively with aggressive direct sellers 
like Progressive Corp. At the same time, planners at Allstate and elsewhere know 
that consumers are turning to the Internet in growing numbers for information 
and convenience in purchasing insurance. Also, industry leaders like Allstate 
know they may be losing sales to customers who turn to Internet-based 
insurance quoting and referral services such as Quotesmith, where they may be 
referred to lesser-known insurance firms offering lower rates.

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<HTML><FONT FACE=3Darial,helvetica><FONT  SIZE=3D3 FAMILY=3D"SANSSERIF" FACE=
=3D"Arial" LANG=3D"0"><B>Below is part of an article from Plunkett Research=20=
regarding banks selling insurance, and eliminating insurance agents.&nbsp; W=
hen did Progeny they see this trend coming?&nbsp;&nbsp; You can get the full=
 article at this link.&nbsp; <BR>
<BR>
Richard<BR>
<BR>
<A HREF=3D"http://www.plunkettresearch.com/finance/financial_insurance.htm">=
http://www.plunkettresearch.com/finance/financial_insurance.htm</A><BR>
</FONT><FONT  COLOR=3D"#000000" style=3D"BACKGROUND-COLOR: #ffffff" SIZE=3D2=
 FAMILY=3D"SANSSERIF" FACE=3D"Arial" LANG=3D"0"></B><BR>
<BR>
<BR>
Banks and e-commerce are rapidly gaining market share in the sale of insuran=
ce, while the total share of insurance sold thorough traditional agents is d=
ropping. In addition, direct marketing, including direct mail and other form=
s of advertising, continues to hold significant market share.<BR>
<BR>
<BR>
These trends will accelerate. For example, industry giant Allstate shook up=20=
its vast exclusive agent network in 1998 when it announced that it would beg=
in selling insurance directly to consumers online and through call centers.=20=
Customers acquired online are later assigned to agents, who receive a smalle=
r commission rate on e-commerce sales than the approximately 10% on sales ge=
nerated by the agents themselves. While the shift may be hard on agents, All=
state has little choice if it is to compete effectively with aggressive dire=
ct sellers like Progressive Corp. At the same time, planners at Allstate and=
 elsewhere know that consumers are turning to the Internet in growing number=
s for information and convenience in purchasing insurance. Also, industry le=
aders like Allstate know they may be losing sales to customers who turn to I=
nternet-based insurance quoting and referral services such as Quotesmith, wh=
ere they may be referred to lesser-known insurance firms offering lower rate=
s.<BR>
<BR>
    <BR>
<BR>
    <BR>
    <BR>
<BR>
</FONT></HTML>
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