NU Online News Service, July 23, 12:12 p.m. EDT
A survey of the needs of AARP members prompted The Hartford Financial Services Group, Inc., to expand its AARP-branded auto insurance by offering the coverage through independent agents.
For 25 years, The Hartford has been the exclusive distributor of AARP-branded auto and homeowners insurance using direct marketing either by phone, internet or mail. The Hartford said this week it has elevated the distribution model, launching the sale of the product through select independent agents.
Michael Concannon, senior vice president at The Hartford, told National Underwriter the change was made based on strong customer feedback, pilot testing and research that revealed that the majority of the nearly 40 million AARP members prefer the advice and counsel of an independent agent when making decisions about purchasing their auto insurance.
"We have a product that has been designed exclusively for AARP members and includes features that are tailored for those members," Mr. Concannon said.
The product is unique because it is designed and priced around the AARP membership.
Hartford AARP auto insurance will be available through agents in as many as 20 states by the end of the year. The plan is to eventually offer the product in every state, the company said.
Earlier this month, select agents in Georgia, Ohio, Virginia, Colorado and New Mexico began selling the product. Additional states by the end of the year will include Connecticut, Oregon, Pennsylvania, Wisconsin, Indiana and Missouri.
The pilot program, which Mr. Concannon described as hugely successful, began last year in Arizona, Tennessee, Minnesota and Illinois.
The product can only be sold to members of AARP, Mr. Concannon said, adding that agents will not be able to sign someone up as a member, because the technology is not there–something that is in longer term development.
Only a select group of agents, who complete a training course designed to highlight the needs of the 50-plus population and meet a set of other strict criteria, including meeting a high-level of business and ethics standards and demonstrating a commitment to community service, will be chosen to sell the product, he said, but all agents are eligible to apply.
"We think this is unique and we want to make sure the agent representative meets the requirements," Mr. Concannon explained. "We want the best of the best of the independent agent force."
For both The Hartford and independent agents, the hope is that together they will be able to grow market share.
"We really feel strongly about this and the four state test results confirm this is a very, very attractive growth opportunity for us," noted Mr. Concannon.
"[Independent agents] are very, very excited about it," Mr. Concannon observed. "They have wanted this for years. For one reason or another over the years we were unable to build something that made sense for all of use (The Hartford and AARP together). We are now putting it out there in a way that we are all excited about.
"The feedback from agents, both in terms of our conversations and in terms of business that has been written has been tremendous. Agents tell us that this is distinct and something that they can offer that gives them an advantage because it is something that nobody else can match, and the uniqueness of our product features and product capabilities and competiveness of our price is a very, very compelling offering for them."
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