When a fight breaks out, both parties don't necessarily have to be to blame—but when you find yourself in one, there are only two options: Win, or go home. And if you think Google's move into the business of selling insurance doesn't constitute a fight, you're wrong.

Last month, the search giant finally launched its Google Compare portal in the U.S., offering auto coverage in California. It is also licensed to sell insurance in nearly 30 additional states thus far. Visitors to the portal can shop for auto coverage by comparing the prices of several participating P&C insurers, and select a price that works for them. Google takes a percentage of the final sale.

Its debut has been stealthy, and its strategy is smart: Start with a well-populated state for the rollout, not a national launch. Learn some lessons along the way, and expand further if the effort bears fruit.

The first step to losing any contest is to underestimate your opponent, and independent agents cannot afford to do so against a behemoth like Google. If you're not taking this contest seriously, you're one step closer to coming out on the losing end.

The moment it threw its hat in the ring and entered the business of selling P&C insurance, Google established itself as a direct competitor to independent agents. It is a threat to your business, and that threat is real. The question is, will you allow it to take business from you, or are you prepared to assert your own hard-earned value proposition?

When considering the list of P&C insurers that have opted to align with Google in this venture, it's tempting to dismiss it as not being a real contender. Its bullpen doesn't exactly read like a who's-who list of top P&C carriers. There's no Travelers here, no Hartford, no Progressive.

Here's the thing, though: It doesn't have to.

Do you honestly think most consumers know the difference between coverage sold by a third-tier insurance carrier and one that ranks in the top five list in net premiums—or, for that matter, an insurer that ranks highly in agent satisfaction? If you do, odds are you're giving them more credit than is appropriate.

Independent agents have long sold on two things: personal relationships, and the personalized service they provide their customers. The common word there: personal. As the fragmentation of news, media and even consumer products continues to shift to a micro level, selling the end user a product more tailored specifically to that person's desires (did you ever think you'd see the day when you could purchase a tin of Crayola crayons containing only the colors you select?), independent agents would do well to craft a single, unified message for Main Street America that communicates one thing: We know insurance, not Google. We do this expertly, and we can craft personalized coverage for you at a good price. “Let Us Show You.”

To the thousands of independent agents in this country who are the backbone of the insurance business and whom I greatly respect, I say this: Take this fight seriously, because a fight it is—and start giving some real thought to how you're going to aggressively market the skills you possess.

If you do otherwise, your retirement will likely start much earlier than you'd planned.

Special Reports /

Google Compare: Prepare. The Threat is Real.

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