independent insurance sellers have a new tool at their disposal. Arrowhead General Insurance Agency, San Diego, has launched an online direct marketing program for agents – reportedly the first of its kind.
Working through a new affiliate called YouZoom Inc., Arrowhead started by providing support and database analysis for agents in California selling auto policies online. This year, the firm will expand the program to include homeow ners and life insurance policies.
“YouZoom provides independent agents and brokers with an e-business Web site supported by a 24-hour call center,” says Kieran A. Sweeney, chairman of YouZoom affiliate. “We want to be the major driver for marketing personal lines insurance on the Internet.”
Phone reps at YouZoom’s San Diego headquarters answer inbound calls and communicate online with customers who click chat buttons on Web sites. The online communication is limited to text at this point, but YouZoom plans to convert to live audio when that technology improves and becomes more commonplace.
Arrowhead hopes to establish YouZoom as a brand name. It purposely avoided a name that sounds like an insurance company because for many consumers, the word evokes negative images of complicated products.
“Most people want to run away when they see the word `insurance,'” says Sweeney. “Buying insurance historically has not been considered a quick and easy transaction. Buying it on the Internet will make it easy,” he adds, “instead of like sticking pins in your eyes.”
The launch of 11 inaugural Web sites in California represents the first step in building a nationwide network, says Sweeney. More than 50 independent agents are expected to start participating in the online marketing program by the end of 2000.
Hundreds of independent agents already bringing business to Arrowhead are expected to start using Web sites for marketing within a few years. YouZoom’s expansion plans in 2000 will bring the online marketing program to independent agents in Arizona, Florida, Oregon, Texas and Washington state, with more states to be added in subsequent years.
The first 11 Web sites allow consumers to receive immediate price quotes and policy options from independent agents offering products from major insurance carriers that participate in Arrowhead’s marketing programs. Policies can be purchased online or by calling a toll-free phone number.
YouZoom assists independent agents with registering Web sites so search engines can locate their sites when an insurance inquiry is made. A centralized database maintained by YouZoom provides agents with data generated from their Web sites and shared aggregated data compiled from the entire YouZoom network of participating agents.
“You get an awful lot of personal information off application forms,” says Sweeney. “We can give agents demographic breakdowns, occupational groups, track the sources of business, names, addresses and marital status.”
Every piece of data that consumers enter at Web sites is tracked by YouZoom and available for independent agents to use for direct mail, telemarketing or e-mail promotions, Sweeney says. Agents are provided with passwords to access the database.
For example, agents can use aggregated data from YouZoom to target insurance products to specific occupational groups or specify the time of day that Web site links and promotions are targeted to consumers.
It’s left up to independent agents to decide how to promote and generate traffic for Web sites managed by YouZoom. Sweeney says some may consider buying banner ads to link with other sites or set up affinity marketing programs with partners and pay for leads on a per inquiry basis.
Predictable partnering scenarios would be for agents to form partnerships with local car dealers and mortgage escrow agents who cannot close their business transactions until insurance coverage is arranged. For example, about 15% of homebuyers show up at closings still needing to purchase insurance, Sweeney says.
Sweeney says present trends indicate the impact of marketing insurance on the Web will be far greater and more successful than telemarketing because the Internet allows consumers to comparison shop for insurance at any time of day they choose. Prior to YouZoom, consumers could only access corporate Web sites of insurance companies that just promote their own products.
A whole new online distribution channel is emerging for insurance marketers. According to industry research summarized by YouZoom, more than three-quarters of auto insurance policies will be sold online by 2003. About one-quarter of all property and casualty policies for homeowners will be sold online by 2003. Online insurance sales are expected to reach $4.1 million that year and grow to $6.3 billion by 2006.
Surveys of independent agents indicate that about 60% are interested in selling insurance online. An estimated 40% of independents presently have Web sites, but only about 17% use the Internet for marketing and 12% use it to generate sales leads.
Arrowhead develops exclusive auto, homeowners and life insurance marketing programs underwritten by various insurance companies. Working with selected independent agents nationwide, the firm generated $320 million in premiums last year.
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