Thursday, December 10, 2009

Auto Insurance Sales Growing Online

Posted by Chris O'Sullivan

The insurance industry has long been known for its personal sales tactics and face to face negotiations. However, as with most industries, the shift to online services has taken off in recent years. Allstate, currently the largest publicly traded personal lines insurer, claims that nearly half of its customers first make contact through their website.

This has led a shift in the number of salesmen needed to conduct typical neighborhood sales. In 2008, Allstate took in $500 million in premiums through its direct channel, which includes its Web site and toll-free phone lines, and direct premiums are growing at a 25% rate so far this year. Though direct premiums are still a tiny part of the $26.9 billion Allstate earned in property/casualty premiums last year, premiums have been sinking for auto insurers in general, and the share that comes in through direct channels is rising.


No comments:

Post a Comment