Will the internet be the death of local insurers? – ValChoice

Could the fast-growing business for consumers be the death of insurers near me? Travel agencies, bookstores and video stores were nearby landmarks. Not so long ago it was unimaginable that these businesses would disappear. Will soon-to-be buyers look at their current local insurance office and wonder why insurance was so expensive and complicated?

The answer to this question lies partly in the type of insurance that people buy. Get started by finding out how good your insurance is with ValChoice’s rate. You will be very surprised. Direct marketers talk a lot about how cheap they are. There’s probably a good reason why advertisers don’t like to talk about how good they are. Just click on the buttons below to find out how your insurance company works.

What Consumers Don’t Know About Insurance Companies

Perhaps the most surprising, little-known fact about insurance is that almost all insurance companies sell through independent agents. To ensure this, look for the best insurance companies in your area. ValChoice lists the five best companies in each state. Almost always, these companies sell through independent agents.

Can local health care providers near me survive in the internet age?

ValChoice, an insurance research firm, has data that shows many local insurers are underperforming. The figures below summarize the analysis. For each of the three insurance distribution channels, the analysis shows the number of insurance companies (underwriters) that sell primarily through each channel. The analysis also shows the number of insurance companies that offer premium products that are sold through the same channel.

  • Independent agents it represents 66% of all auto insurance companies, but only 33% of premium products.
  • Captives they represent 11% of the auto insurance industry, accounting for 14% of premiums.
  • Direct-to-consumer it represents only 15% of the auto insurance industry, but 52% of the premiums.

It is guaranteed that buyers will always find, and find quickly, a good price. The reality is that the cost of insurance has been growing faster than the average household income. This forces consumers to find lower rates for their insurance. The alternative of paying a large monthly premium for insurance is unaffordable to many consumers.

How can insurers near me survive?

Consumers are switching to buying insurance from companies that spend more on advertising. These companies usually do not offer the best insurance. However, the promise of a very low price is tempting. As this grows, the lives of local insurers become increasingly difficult to manage. Ultimately, they are forced to quit early, sell their organization or change careers. For insurance companies, the cost is the loss of market share for not pursuing a direct-to-consumer approach.

That’s not how it should be. Insurance companies and local insurers should focus on diversification. This includes focusing on selling price and quality rather than getting caught up in selling on price.

Consumers are now benefiting from competitive pricing that is largely driven by a consumer-oriented model. However, that benefit will change. The change comes as industry consolidation is complete enough that large carriers no longer need to win business based on the best price.

If you want to find an insurance agent in your area, click the button below.

Consumers and Insurance Companies are in this together

Both consumers and local insurance agents need tools that help them identify the pros and cons. Providers must find new ways to retain their customers by ensuring that the products they are offering provide the expected value. Consumers need purchasing tools that help them understand what they are buying as the move to a self-service model can leave them with lower costs, and less security.

What options are available to insurance companies?

Some companies have looked for other ways to change their strategy, including reducing the prices they pay. Although this method helps the insurance company, it is a method, not a method. Instead, companies and providers should focus on providing a variety of products that have more value for consumers. Differentiated products will be the new frontier in insurance sales. Companies competing for market share can compete on this basis. Companies that provide quality products and work to maintain market share will also use this strategy to capture their customers as they adapt their strategies to the new way of shopping for consumers.

Different products do not mean new products. In many cases, the products are already differentiated based on how they make their claims. The difference is that agents need tools to verify this difference. Agents should also be trained on how to incorporate these tools into their sales.

Would you like to estimate what your insurance should cover? Just click the buttons below to find out.

Note: ValChoice does not receive compensation from insurance companies for performance analysis.

About Dan Karr

Dan has been a CEO or Vice President of a high-profile company for over 20 years. While working as the VP of Marketing and Sales for a technology company, Dan suffered a serious injury on the job. After dealing with trying to get insurance companies to cover his large medical bills, or getting a loan to pay off Dan’s medical bills, he became well aware of the complexities of insurance. Dan founded ValChoice to provide his experience by bringing consumers, insurance agents and financial advisors the easy-to-understand analysis needed to identify insurance companies that offer the best value, coverage — based on claims — and service.