Multi-Channel Opportunity

April 02, 2013

What would Amazon do if they sold insurance?

Wouldn’t they need a platform that speaks insurance with a choice for the consumer. Amazon presents products right alongside products from their partners. It cost them a ton of money to get someone to come to the site, their attitude is we might as well get a piece of the transaction, even if the customer wants something we don’t sell, rather than get nothing and have the customer go somewhere else and maybe never come back.

What constitutes a multi-channel opportunity in the P&C insurance world? Why would a company, given the risk profile of certain classes of customers not want to provide their capacity to everyone that may be eligible and better yet profitable, lots of reason really, at least in our experience. Technology is frequently an issue. It can be difficult to provide a product that is sold through a specific channel such as the agent channel and then repurpose that for the direct channel. But not with the Bolt Platform. Of course, there is the concern about dis-intermediating the agent channel, for example. But what if your customers dis-intermediate you? The problem is customers want to buy like they want to buy. And no one is going to tell them differently.

It certainly is important to provide the flexibility that goes with new insurance buying paradigm. According to a recent McKinsey study, “In defining their distribution model, carriers must first determine the level of multichannel access that they aspire to provide. The answer will largely depend on their starting point. Direct insurers must consider whether to open physical locations to broaden their appeal beyond self directed shoppers. Carriers with captive agents must develop a model that allows them to target shoppers who value moving seamlessly across channels. Independent agent carriers must find a way to complement their independent agents’ proposition by offering distinctive online self-service options to their policyholders.”

In the end the consumer will win because they get to choose. The Bolt Platform puts the insurer in control of their own destiny by offering the choice to consumers and the choice to the carrier. Carriers can provide anytime, anywhere, any channel access to the customer, whether direct, agent based, or a combination and when the market changes the Bolt Platform offers immediate accessibility and change to any product and any channel.

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