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Forum member James Tobin (screen name: scottstreet) contributed a commentary piece (link below) about questionable marketing tactics being used by some carriers when they go direct. He says while he understands their motivation for starting a direct channel, he has noticed some misleading statements that don’t sit well with him. From the piece:
The marketing content is where things get dicey. See, the carriers can’t come out and say that your insurance will be less expensive this way, because it’s not. Insurance rate schedules are approved by the Department of Insurance in respective states. Therefore, regardless of who sells you a policy of like terms – an independent agent or the carrier directly – the price is identical.
However, the online marketing for these consumer-direct products implies that because you are going direct to the carrier, you are saving time and money. Nothing can be farther from the truth. In addition to the cost being identical, the streamlined application procedure is generally the same. All going direct to the carrier does is make the carrier wealthier, and deny the consumer the benefit of multiple carrier options and experienced advice.
Anyone else have an issue with this? And thanks to scottstreet for contributing the piece.
Insurance Forums | When technology enables sleazy marketing practices
The marketing content is where things get dicey. See, the carriers can’t come out and say that your insurance will be less expensive this way, because it’s not. Insurance rate schedules are approved by the Department of Insurance in respective states. Therefore, regardless of who sells you a policy of like terms – an independent agent or the carrier directly – the price is identical.
However, the online marketing for these consumer-direct products implies that because you are going direct to the carrier, you are saving time and money. Nothing can be farther from the truth. In addition to the cost being identical, the streamlined application procedure is generally the same. All going direct to the carrier does is make the carrier wealthier, and deny the consumer the benefit of multiple carrier options and experienced advice.
Anyone else have an issue with this? And thanks to scottstreet for contributing the piece.
Insurance Forums | When technology enables sleazy marketing practices