Independent-agency carriers are not likely to succeed by selling direct through the Internet. If they abandon their agency sales force they will see premium fall and claims rise. And if they attempt to sell in parallel with their agents, they will lose their agents' trust and muddy the relationship with the insured.
Similar points can be made about online self-service. If carriers try to make themselves the direct supplier of online services, ultimately they will lose the goodwill of the customer and weaken the position of their agents. (See my last two columns for the details on why.)
But there are wise ways carriers can use the Web. They're not necessarily very expensive, can pay for themselves quickly, and can be adopted even by smaller companies. And when Web technology is coupled with the right business strategy, carriers can find themselves enjoying both premium growth and better ratios.
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