When it comes to the online experience, some consumers say they’d prefer a hands-off experience – a pain point
Economical Insurance is looking to address with a new web direct-to-consumer solution. The 145-year-old P&C insurer has officially gone multi-channel, adding the direct business line to an already established broker network.
Branded Sonnet Insurance Company, the direct business line utilizes mass amounts of location, weather, and historical data to provide users with what it claims is a personalized quote with just five questions. It’s heralded as the first of its kind in Canada, and targets consumers – especially web-savvy millennials – who prefer to research their insurance options on their own.
“Our consumer research is clear that there’s a segment of the Canadian consumer base that really trusts and values broker advice and I don’t think that’s going to change,” says Karen Gavan, president and CEO of Economical. “But there’s also the other half of consumers that are more self-sufficient, they want to do it online, and are very frustrated with the offerings in the marketplace.”
Michael Shostak, Economical’s Chief Marketing Officer, likens the approach to “buying a book off Amazon”, and says the insurer invested considerable research as to why some clients prefer connecting with brokers, and some don’t. “There’s a lot of sophistication that was really designed to eliminate the guesswork behind insurance; that was one of the pain points we heard consistently – that consumers had doubt and uncertainty about what they were buying and that made them feel uncomfortable.”
But how does Economical’s broker channel feel about the new addition to the business? Gavan maintains that through separate branding of the new solution, and by pursuing a different customer segment, Sonnet isn’t designed to step on any broker toes.
“We’ve been very open and transparent with our broker partners,” she says, adding “we’ve been sharing extensive insights we’ve gained from all the consumer research, which will help them serve their customers better.
“Of course brokers would rather not have more competition – but we are clearly targeting a segment of the consumers that we don’t think the brokers currently serve.”
