The popularity of online comparison shopping has given rise to a preponderance of insurance aggregator sites. Many of these Web sites bill themselves as easy, one-stop shopping resources for consumers, while promising agents a simple way to grow their book of business.

But there is more to aggregator sites than meets the eye. As with other types of technology, it is important to learn exactly how the technology works and what the potential benefits and challenges are in determining whether working with an aggregator is the right marketing tool for an agency.

Insurance aggregators are companies that work with a large number of direct insurers, agents and intermediaries to deliver to consumers a streamlined, user-friendly experience.

Since many resources are “aggregated” into one place, the customer need only complete one set of questions, rather than multiple sets, to receive price results or agent referrals for a number of different insurance providers. Typically, aggregator sites provide a cost-per-lead pricing structure to agents who utilize the service.

Given the ubiquitous nature of Internet networking and e-commerce, agents must find a way to use technology to their advantage. Aggregator sites are one way to accomplish that goal.

Today more and more consumers start their search for the right insurance policy online, whether to request a quote and compare prices, or to find an agent to work with face-to-face or over the phone. It is vital that agents have a presence on the Internet, making it easier for customers to find them.

There are several advantages to working with an aggregator site. Smaller agents in particular can benefit from the aggregator's ability to rank high on searches conducted in major search engines.

The massive volume of insurance-related Web sites makes it highly unlikely smaller agents will be easily found in consumer searches, but a well-known aggregator will rank high every time a consumer searches for a quote or an agent. If an agent is connected to an aggregator, they receive the benefits of the aggregator's size.

Another benefit to working with aggregators is that agents have a large degree of control over how much it will cost. Many of the well-known aggregator sites operate on a pay-as-you-go basis, meaning that agents only pay for the Internet leads that they choose to purchase.

The agents control the level of exposure and cost they are willing to take on, and can usually make adjustments easily using their online accounts. The average pricing for Internet lead services–a main offering of aggregator sites–ranges from $8-to-$12 per lead.

Finally, agents can geo-target their lead purchases down to the five-digit ZIP code to ensure that they are writing polices only from their designated marketing territories.

CHALLENGES CITED

There are challenges to working with aggregator Web sites as well.

o First, agents must be comfortable and familiar with Internet media. The entire process of working with the aggregator site will be Web-based, meaning that agents must be comfortable checking in with a Web site for all their account information, as well as to access the services and leads for which they are paying.

o Second, it is important to remember that while partnering with an aggregator is a powerful alliance, the connection in and of itself is not a panacea.

Agents who are paying for online leads, for example, must continue to work the leads to bring in the sale just as they would with any other technology or marketing tool.

The aggregator site will only get agents into the path of online consumers who are looking for information about insurance. It will not close the business. That must be done by the agents themselves.

o Finally, working with an aggregator site is another marketing tool that must be mastered.

Different types of technology have strengths and weaknesses, depending on the task at hand, and it will take time to experiment with different fulfillment approaches to understand which applications work best under what circumstances.

While working with insurance aggregators can be highly profitable, it presents unique challenges that agents should understand to get the most out of investing in an aggregator site.

Every site is different. Internet technology can take some getting used to for those unaccustomed to it, and partnering with an aggregator site involves focused attention and diligence to reap the benefits of the service.

As consumers increasingly look to Internet technology for insurance information and products, working with aggregator sites can mean the difference for agents between stagnation and growth.

Regardless of method, agents must find a way to get a piece of the action that Internet technology provides–or risk being left behind.

Special Reports /

Online Aggregators Can Help Open Doors, But Agents Must Still Close Prospect Sales

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