Yup, it's true. Google is joining the insurance game, and itcould happen as soon as this quarter.

This move is sure to bring anxiety to independent agents, whoare already struggling with the challenges presented by directwriters.

"There's no question that this is competition," says Steve Anderson, insurance technologyconsultant. "But is this different competition than Geico,Progressive and Esurance?"

Google recently formed a partnership with the insurancecomparison shopping site CompareNow.com, a move that suggests thatthe launch of its auto insurance shopping site is forthcoming,The New York Times reports.

The deal with CompareNow.com, which is similar to the Kayaktravel comparison site but for auto insurance, gives Google accessto about 30 insurers in CompareNow's network, including Dairyland,MetLife, Mercury, Permanent General Assurance, Viking Insurance ofWisconsin and Workmen's, according to an analyst at Forrester Research.

Not entirely new for Google

Google has run an autoinsurance comparison site in the U.K. for two years, where suchWeb comparison portals are common.

In the U.S., the law regulates that any site that brings aninsurance quote together must also be licensed to sell insurance.However, a Google employee in San Francisco recently became alicensed insurance agent, according to Forrester analyst EllenCarney, who also pulled public filings to determine that Google isnow licensedto do business in half of the states: Alaska, Arizona,Delaware, Florida, Idaho, Illinois, Indiana, Louisiana,Massachusetts, Minnesota, Missouri, New Hampshire, New Jersey, NewYork, North Carolina, Ohio, Oklahoma, Oregon, South Carolina,Tennessee, Texas, Washington, West Virginia, Wisconsin andWyoming.

The site is expected to launch in California very shortly,followed by "likely launches in Illinois, Pennsylvania and Texas,"Carney writes.

What to do?

Anderson says that the key to meeting the behemoth's challengesis to demonstrate your value, something that producers have beenneglecting recently.

For too long, agents have been order-takers, he says. But now,especially given the imminent launch of Google CompareAuto Insurance Services Inc., agents have to learn how to reach outand tell a story. "And the story is, a Personal Auto Policy is notthe same," he says. "A Geico policy or a Google policy, there aresignificant differences there. And agents have not been good attelling the story that insurance is not a commodity."

Indeed, that's something echoed by NU P&C columnist ChrisAmrhein, who asked agents to state that as their New Year'sResolution. "It's time to embrace a simple reality: advertising isnot truth-telling. Just because it's simpler, quicker, cheaper orhas a cool name doesn't mean that it's attractive," hewrites. 

One way to show value? Deliver solid proof to your clients ofthe clear advantages of working with you, especially during theclaims process, where the independent agent can really shine overthe latest online or big box insurance store, Amrheinsays. 

Take a balanced approach to marketing–through online, contentmarketing and the telephone. "We say as agents that we have arelationship with people, but I'm not concerned that people thinkwe do," Anderson says. "And that's a follow-up failure."

Anderson says that the Google executives in charge of thisprogram appear to not have a background in insurance (Carney statesthat the three executives' LinkedIn profiles include roles ofproject manager, securities and corporate governance, andregulatory operations), and that this is both good and bad forindependent agents. "The Google execs don't know what they can'tdo–but whereas I accept and understand state regulations, they maysay 'Why not?' and challenge them."

An independent agent is not going to be able to compete with aGoogle search for auto insurance, as "an independent agent can'tout-Google Google, but they can out-local Google," Andersonstresses. "Most agents have a local presence, which is where Googlewill have a much harder time."