As drivers turn to the Internet to buy auto insurance, an insurer that has relied heavily on agents to sell its insurance will revamp.
Insurers that have traditionally relied on neighborhood agents to help bring in auto and homeowners insurance customers are adapting to the Internet, which has a growing appeal for drivers. Thomas J. Wilson, chief executive of Allstate Corp., said that half of its new auto insurance customers first make contact through Allstate's Web site, rather than its network of 14,700 exclusive agents and that Allstate will adjust to accommodate customer preferences.
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 percent rate so far this year, Wilson said. Though direct premiums are still a small 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 dramatically.
