Last month, search engine conglomerate Google announced it is throwing its hat into the auto insurance ring. This is big news for the industry, most especially for independent agents already dealing with competition from other direct insurers like Geico and Esurance.
NU-PC360 reader response to the news was mixed, but most felt Google customers would be missing out on the "personal" part of personal auto insurance.
Commenter Maria Parker says, "I have [been] preaching for years that the policy you buy is only as good as the [a]gent that sold it to you and the service and individual attention that they give you. Being a 1-800 customer may be fine for the moment and save a few bucks, but then what happens when you need help and no one knows you? [...] I think that once a customer needs assistance and experiences the 800# form of customer care, they will realize what is important to them…saving $15 or having an agent that cares and actually helps them when they need it."
Tim D'Angelo echoes a similar sentiment, advising agents and brokers to "[b]e someone in your local community that customers KNOW, LIKE, and TRUST. If your customer leaves you for $12/mo savings, you failed on one or more of KNOW, LIKE, or TRUST."
Chris Larsen comments that some agents aren't adhering to D'Angelo's advice, citing personal experiences with agents who seem to take a hands-off approach when it comes to claims handling. "[Agents] distanced themselves from the claim process, giving me the idea that they did not want to be involved with or allied with their claims personnel and practices," he says. "Insurance agents in my earlier years were involved with me and my family. They stayed in touch throughout the year. Nowadays, they give me the feeling that I am being taken for granted."
Commenter sdlifer replies in agreement that some agents are aloof to the claims handling process. "[Agents] are employees of [insurance] companies and represent the companies' interest, not yours," sdlife comments. " They will always refer you to the claims departments and say 'I am only an 'agent.'"
Other readers are concerned how having a search engine mogul involved in this space will effect advertising in the auto insurance space, now that the search engine itself is competition.
William Johnson says: "I pay good money to Google for ad words. Now what will be the point? If someone looks up my insurance agency using my company name directly, Google will probably come up first. They'll lose tens of millions in advertising."
Mike Wise isn't so sure that agents will lose money by being bumped down in search results, however, claiming word-of-mouth referrals are still the preferred method of finding an insurer. "Word-of-mouth referrals have always trumped blind search," he says. "Before the internet, a recommendation from a friend was always better than flipping through the yellow pages, right? The same holds true today, doesn't it? So doesn't social trump search?"
Wise goes on to explain customers may have an issue trusting a direct insurer — especially one like Google which is known for possessing a weath of customer data. "Plus you have the issue of trust," he explains. "Everyone knows Google has all the data and is making big bucks from it. But not everyone wants to then pay them a monthly premium."
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