An
article today indicated that search engine powerhouse Google intends to get
into the insurance sales business. Google which has a number of business
entities is said to enter the insurance business in the United States under
Google Compare Auto Insurance Services and is licensed to sell insurance in 26
states and in one state has the ability to offer insurance from six insurance
companies.
The
Google insurance site was originally to be tested in California last year but
had been delayed to sometime in the first quarter of 2015 and then be rolled
out in Illinois, Pennsylvania and then Texas.
What
does this mean for the insurance consumer? Well, not much really. The insurance
companies that will be featured by Google already offer insurance direct to the
consumer. So, all that Google will be offering is a search feature for
insurance rates for companies that already offer insurance direct to the
consumer. The consumer will have another choice to price comparison shop which
is a good thing however access to insurance markets has never been limited.
Wal-Mart
has also recently entered the insurance sales business by offering kiosks in
their stores and limited access on their website. For the consumer that
appreciates shopping online and is well acquainted with Google the new option
will be welcomed. Similarly, for the consumer that likes to shop at Wal-Mart
and would like the convenience of buying their insurance at the store the
option will be welcomed just like Google.
For
insurance agents the sky is not falling. Consumers that like to shop insurance
on their own should have the options to do so and for the same consumers that
like to buy insurance on their own the additional option of having Google
offers more choice. The consumer should have the ability to write their own
wills without an attorney; should be able to complete their taxes without a tax
professional; should be able to invest without a stock broker; plan their
retirement without a financial planner and yes should be able to buy insurance
without an insurance agent.
However,
for someone who is serious about their assets, who want to protect their family
today and into the future an insurance agent is an important part of that plan.
So, welcome Google but I am not worried.