Amid story after story on direct channel auto coverage and debateover whether the insurance line is worth fighting to sell,Travelers says it has listened to its independent agent partners todevelop a competitive product.

“We do not subscribe to the notion that auto insurance is acommodity,” Behram M. Dinshaw, senior vice president of personalinsurance product management, tells NU. “We spent a lot of timewith agents, finding out what's working well and what's not. Thisis a bold step in the marketplace and we think we're in a goodposition to launch something like this.”

Travelers launched Quantum Auto 2.0 in October, in eight states.The product is now in 10 states with plans to expand to 15 statesby the end of the year, and then to a majority of states next year.Dinshaw says the product allows agents to bring more options toconsumers, with new features and benefits—such as accidentforgiveness and disappearing deductibles—in order to give the agenta better chance at retaining the business at renewal.

Quantum Auto 2.0 responds to drivers' increased use oftechnology and comparative raters that select the mostcompetitively priced offerings for consumers. The insurer alsobelieves Quantum Auto 2.0 can be an entry point for agents tobundle other products for consumers.

“[Agents] want something to sell, they want to sell more andthey want to grow the channel,” says Dinshaw. “But they needed aproduct from a reputable, trusted brand to allow them to competeand add value to respond to the consumer. We've listened and havegiven them a more intuitive, marketable and explainable solutionbecause the consumer has spoken—they want it all.”

In recent months executive leadership at Travelers announced itwould cut auto insurance rates to position the insurer morefavorably in a marketplace driven by an increasinglyprice-sensitive consumer. Agents have agreed to a lower commissionlevel on the Quantum Auto 2.0 product.

“Price matters, but agents have the consultative power to allowthem to protect consumers and make them fully understand whatthey're buying,” Dinshaw adds. “Initial response has been verypositive. Agency engagement is up.”