Major U.S. Insurers Jump on Distribution Platforms To Win Customers and Sales | The Salesmark

Major U.S. Insurers Jump on Distribution Platforms To Win Customers and Sales

Major U.S. Insurers Jump on Distribution Platforms To Win Customers and Sales

Major US insurers are joining the new digital exchange to sell their insurance as well as their rivals. This is a new twist in the industry known for its fierce competition.

Powerful new platforms such as Semsee, bolttech, Bold Penguin, and Uncharted retrieve data from many carriers and allow agents to quote multiple policies in the same way that travel agencies see competing airfares. Allows you to check.

According to executives, Chubb Limited, Travelers Companies, Inc., and Liberty Mutual have recently signed contracts similar to insurance distributors.

“Eyeballs are very important to them,” said Philip Charles-Pierre, co-founder and CEO of Semsee, which focuses on New York-based commercial policy. Many insurers are aware that if a large agency is using a platform, they will need to use that platform.

According to experts, the growth of digital distribution represents a change in the way insurers compete in the market for car and homeowner coverage and hundreds of billions of dollars worth of business and commercial lines annually.

Carriers also have the benefit of being able to better meet their customers’ needs without having to sell their own policies.

Mark Breading, a partner at Strategy Meets Action, a New York management consulting firm, said:

The industry is moving away from “captive” agents that sell only one company’s insurance policy, but digital exchanges are accelerating that trend, said Matt Leonard, a partner at Oliver Wyman, who works on insurance. increase.

“Currently, the entire process is supercharged by a wider market of technology and players,” he said.

Partnerships with exchanges have grown over the last five years. Despite the digital revolution in other industries, many insurance customers, especially small businesses, prefer to work with agents who can explain their insurance policies and find the best prices. As a result, the independently created online tool insurance company did not take off as expected.

According to executives and experts, the exchange has enabled agents to offer better prices to their customers and meet a wide range of needs without necessarily compromising profits.

“Chub is actively involved with many partners in this channel, including Bolttech and Bold Penguins,” said Sean Ringstead, Chub’s chief digital officer.

Rob Schimek, CEO of Bolttech, gave an example. Companies that create car policies but not homes can use bolttech to cover homeowners from other carriers. This prevents customers from shopping elsewhere. Auto insurance companies earn homeowners insurance sales commissions, while other insurance companies earn premium income.

“Carriers are anxious for access to distribution,” Schimek said. He said that if an insurer does not want to provide insurance through the exchange, it will not have access to customers of other insurers on the exchange.

Bolttech has recently completed a $ 180 million round of funding, partially backed by Chinese billionaire Richard Li, and has expanded its reach from 14 to 26 countries.

Matteo Carbone, founder, and director of the research group IoT Insurance Observatory said exchanges will gain more clients while allowing smaller insurers with specialized policies to enter larger markets. It poses a threat.

“This is the biggest risk to me,” he said.

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