Net Nuggets - Update on Insurance

Other EComm Articles

Focus on HomeCom: Web Builder for Banks and Insurance Agents

Focus on Peapod.com
Online Food Shopping

Insurance.com
. . . Online Distribution Strategies for Insurance Products

Business on the Net

BizNet97
. . . The Net Proves Commercial Viability

BizNet96
. . . Intro to E-Comm & Law of Net

. . . whimsical explorations of Net Resources

A Report of an Evening with Kinsley, Negroponte, Polese, Bateson, Janney & Lanier at Hartford's Bushnell Memorial

Financial Services Online:
March '98 Update on Insurance

Previous Net Nugget articles (especially Insurance.com) discussed new and impending developments in the marketing and sale of insurance products online. Since that was written, Intuit has introduced auto insurance sales to its InsureMarket site, and InsWeb has stepped up its publicity of its offerings. The Net offers the "increasing returns" economics of networks, the power of community, and the opportunity to eliminate the costs of intermediaries and manual hand-offs in the distribution chain.

On March 16, the National Association of Insurance Commissioners (NAIC) Internet Marketing Issues White Paper was adopted at the NAIC Spring National Meeting, and it is now an official publication of the NAIC. The draft paper was free online during the comment period, but NAIC's web site now invites anyone wishing to obtain a copy of the paper to purchase a copy by contacting the NAIC Publications Department at (816) 374-7259. This author found no site for downloading the paper.

The April 6, 1998 issue of Forbes ASAP focuses upon the prospects of various categories of online commerce, and includes a very interesting scattergram on p. 64, called "Web Retailing Sweet Spots." It has two high/low axes, "Internet Business Opportunity" and "Net Suitability." At the bottom corner, low in both scales, is "Home Furnishings." Smack in the middle of both scales lie "Consumer Electronics/Appliances" and "Groceries/Food." (see Net Nugget Focus on Peapod.com). Up in the "high/high" corner, with books, travel and computer software/hardware lies the very peak item in both scales: "Insurance/Financial Services."

Continuing Online Sales: Term Life Insurance

According to the online edition of National Underwriter, Tommy Lane, an insurance agent in Gainesville, Fla., is providing consumers who buy term insurance through his company's Web site with an "Internet discount" in recognition of the lower distribution expenses associated with Internet purchases. Mr. Lane, president of Wholesale Life Insurance, introduced a quote service approximately one year ago that provides consumers with a 15 percent cash rebate on their first year premiums if they buy through Wholesale Life's Web site. "As far as I know we are the only quote service to offer low premiums and cash back," said Mr. Lane.

According to a company press release, Genelco has introduced a line of Internet products and services to help insurance and financial services companies conduct electronic commerce over the Internet. Genelco launched the new product group, called WebHarbor, at the Life Office Management Association Systems Forum March 8 in Atlanta. According to a March press release, WebHarbor, designed for insurers and other financial services firms, enables companies to complete fully secured transactions, via the Internet, with their sales representatives and customers.

Arriving Now: Auto Insurance

In early March, InsWeb announced that it is offering free quotes for auto and term life insurance at USA TODAY Online. InsWeb's offerings will be seen in the Auto Classifieds and Insurance Channel of the USA TODAY Online Marketplace. Additionally, InsWeb banner ads will be featured throughout the USA TODAY Online Web site.

A March press release announced the initiation of InsureWorld, billing itself as "the world's first online comparative auto insurance service." According to a recent press release, datelined Cedar City, Utah, InsureWorld's web site has been in development for three years, and plans to become an important part of Net commerce in the next century by providing consumers with instant access to comparative rates.

"InsureWorld was founded in 1995 to provide consumers with instant access to insurance quotes and show them where to save money on premiums,'' says Bruce Crankshaw, Vice President of InsureWorld, according to a press release we found at biz.yahoo.com/prnews "In addition, InsureWorld provides an easy agent-locator service and valuable insurance news from around the nation. InsureWorld does not sell insurance. Therefore, consumers are provided unbiased quotes. InsureWorld is committed to helping consumers find the best possible auto insurance rates.''

When we visited at the end of March, 1998, InsureWorld was quoting only for Utah drivers.

In mid-March, Autoweb.com, an automotive retailer, announced an agreement with State Farm Insurance that will allow its customers to request automobile insurance quotes directly through the Autoweb.com site.

"Our partnership with State Farm is a natural addition to our site -- the ability to quickly obtain competitive insurance quotes is a key element of the car-buying cycle," said Payam Zamani, co-founder of Autoweb.com in a recent press release. "Now, our customers can buy and sell cars online, conduct research, secure financing and apply for insurance without ever leaving Autoweb.com. This convenient and immediate access to a variety of quality services is the hallmark of our brand.''

Quicken's InsureMarket opened its doors to auto insurance this winter, as forecast. At its site, it offers online quotes for Alabama residents, and access to Allstate agents for quotes in all states.

Progressive is already offering auto insurance to consumers in Minnesota and Virginia via its comparison rating web page.

On the Horizon: Home Insurance

In March, Bank of America announced that it has launched a new Internet service that allows consumers to obtain home sales and price information, along with other data, for specific properties and general neighborhoods located throughout 21 states. According to a March 13 press release, the new HomeWorth(TM) service allows consumers to search for detailed information about a specific property, including the sales date, sales price, square footage, year built, number of bedrooms and bathrooms, and other property features. The service was announced at Real Estate Connect 98 in San Francisco.

According to a March press release, consumers can access HomeWorth by visiting the At Home section of Bank of America's web site, where the HomeWorth service contains information about properties located throughout many counties in these 21 states: Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Maryland, Minnesota, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Vermont, Virginia, and Washington. According to the press release,visitors to the site can obtain information about home equity loans, as well as an online mortgage application form, current mortgage interest rates and information about how to set up and finance a home office. No mention is made of home insurance. Yet.

In March, Property Data Systems, LLC. announced the opening of NewHomesDirect Web site, providing access to comprehensive, unprecedented listings of new homes in Atlanta. The site is said to be designed to give consumers up-to-date information and easy access to every new home on the market in Atlanta. The Web site also promises to soon offer detailed new home information in both the Austin and New Orleans areas, with 30 additional major metropolitan areas to be launched over the next nine months. Also announced was an agreement with Yahoo! Classifieds to publicize NewHomesDirect's information.

Internet mortgage sites may be another natural venue through which to extend homeowners insurance sales on the Net. Some of the new such sites were showcased at Real Estate Connect 98, an annual Real Estate conference hosted by Inman News Group. According to a press release from Liberty First Financial, four major Internet Mortgage sites were represented: Home Shark, E-Loan, Quicken Mortgage and LoanGuide.com.

According to a press release from Liberty Financial:

"LoanGuide was developed by a local loan officer and two developers with a total investment to date of about $5,000. (Not in millions!) Steve Lawlor, Professor of Computer Science at Foothill College in Los Altos, Steve Sicular, owner of SMS Web Development, and Casey Fleming, a loan counselor with Liberty First Financial of San Jose worked in their spare time for about a year to develop the site. It was launched in November of 1997 and now draws an average of 100 users per day. It has received critical acclaim in articles throughout the country in its very short four months of existence."

This focus page will be archived at nnarc980329.html and may be edited in the future. Check in at Net Nuggets from time to time. The information contained herein is believed to come from reliable sources, but no warranty of accuracy is expressed or implied. Except as stated, the author has no position in the securities mentioned at this time, but that may change.

Doug Simpson
doug.simpson@snet.net
3/29/98