Google will shut down operations on Google Compare, its U.S.Auto insurance comparison-shopping site, after one year inbusiness, according to the Wall StreetJournal. 

Search Engine Land obtained an e-maildelievered to Google Compare's partners Monday night, in which thetech giant said Google Compare will no longer operate as of March23. Google has since verified the e-mail's authenticity.

In the e-mail, Google said the Auto insuranceservice didn't meet expectations for the company:

"Despite people turning to Google forfinancial services information, the Google Compare service itselfhasn't driven the success we hoped for. We greatly appreciate yourpartnership and understand that this decision will be disappointingto some. But after a lot of careful consideration, we've decidedthat focusing more intently on AdWords and future innovations willenable us to provide fresh, comprehensive answers to Google users,and to provide our financial services partners with the best returnon investment."

Many suggest that Google Compare wasn't prepared to respond tothe value that independent insurance agents provide topolicyholders.

Mike Becker, executive vice president and CEO of the Alexandria,Va.-based National Association of Professional Insurance Agents,told PC360: "Google has apparently discovered what independentinsurance agents have always known: When it comes to insurance,customers appreciate that it is a complex transaction that requiresprofessional advice. PIA's research has consistently shown a strongpreference among both personal lines and commercial lines customersfor doing business with a local agent.

"However, independent agents should not interpret this decisionto wind down Google Compare as an indication that they need notcompete in the digital arena," he stresses. "Customers also wantlocal agents as experts who are capable of online interactionconcerning their accounts and are backed by the efficiency of theInternet."

"The closing of Google Compare doesn't lessen the consumerappetite for online shopping," said Robert Rusbuldt, president andCEO of the Alexandria, Va.-based Independent Insurance Agents &Brokers of America, in a statement. Agents and brokers can provideadditional value by conducting policy transactions in the wayconsumers prefer, he added, and may need to increase their digitalpresence to do so.

Speaking to PC360 just before the launch of Google Compare lastyear, insurance technology consultant Steve Anderson said, "Anindependent agent can't out-Google Google, but they can out-localGoogle. "Most agents have a local presence, which is where Googlewill have a much harder time."

At its launch last year, Google Compare had access to about 30insurers in its network, including Dairyland, MetLife,Mercury, Permanent General Assurance, Viking Insurance of Wisconsinand Workmen's. 

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