Google Compare to add agent support feature in California

After what it describes as a successful debut, Google is adding new features incorporating agents to its comparison tool.

Google Compare to add agent support feature in California

Business strategy

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When Google Compare launched in California in March, many heard the death knell of the independent insurance agent. Now, it appears that the multinational company is working to incorporate agents into its operations, adding an agent support tool among other enhancements.

During Google’s AdWords Performance Summit, Group Product Manager for Google Compare Stephanie Cuthbertson said that in the months since the comparison tool began operations, many users have shared their desire to discuss their purchases with a local insurance agent.

Google has responded by incorporating both captive and independent agents into its offerings.

Learn the difference between an independent agents and captive agents.

“Now when comparing insurers, you’ll have the ability to buy online or call a local agent to get help with your policy,” Cuthbertson said. “This includes support for insurers’ own agent networks, and independent agents.”

Cuthbertson did not share details on what this might mean, but the ability to work with comparison tools like Google’s is a big win for agents.

Compare.com CEO Andrew Rose, who has partnered with Google Compare, told Insurance Business that online comparison tools benefit agents and will be key to their survival in a market increasingly dominated by automation.

“Our model is something that gives agents considerations where they wouldn’t have it otherwise,” Rose said. “We have a shot in competing against GEICO and other big advertisers. You may have to sacrifice a bit of commission up front to get your skin in the game, but it will allow you to take the personal relationships you offer and put it out on the multi-product market.”

GEICO, and what he calls the other members of the “big four” insurance advertisers, are actually where Rose believes threats to agents lay. Along with Allstate, State Farm and Progressive, GEICO would “consume market share” simply by virtue of their well-funded ad campaigns.

“They receive a disproportionate amount of consideration,” he said. “The market share change could be dramatic if sites like ours didn’t exist.”

Google Compare has been performing well since its launch in California. Cuthbertson said “millions” have used the site to shop for auto insurance and roughly half of shoppers say they have found cheaper rates than they pay with their current policy.

Fresh from that success, the company is expanding into Texas, Illinois and Pennsylvania.
 

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