Part
01
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Part
01
D2C Insurance Competitive Analysis - 1
The main competitors of direct-to-consumer (D2C) insurance in Rhode Island, Oregon, and Texas are Amica Mutual Insurance Company and Allstate Insurance Corporation. Full details about the D2C competitive landscape are provided below.
AMICA MUTUAL INSURANCE
COMPANY OVERVIEW
- Amica is a D2C company because it does not use agents to sell its products. Their service team works directly with consumers.
- In 2018, Amica partnered with iPipeline in a collaborative effort to provide a direct to consumer experiences in a fully digital world.
- A top auto and home insurance company in Rhode Island.
- Amica is the oldest mutual insurer of automobiles in the US. They are a direct writer of personal insurance with auto, home, life, and marine coverages.
COMPANY REVENUE
- Their revenue was $2.3 billion as of 2018.
- Their net income in 2018 was $136 million.
PRODUCTS AND SERVICES
- Amica offers auto, home, and life insurance.
- Aside from that, the company also offers umbrella, condo, renters, marine, motorcycle, events, small business, and retirement insurance.
PRICING DATA
- Rhode Island renters:
- For coverage of $20,000 for personal property in renters insurance, with a $1000 deductible, and $100,00 liability protection the annual insurance rate is $94 for residents of Rhode Island.
- For coverage of $40,000 for personal property in renters insurance, with a $1000 deductible, and $100,00 liability protection the annual insurance rate is $139 for residents of Rhode Island.
- For coverage of $40,000 for personal property in renters insurance, with a $1000 deductible, and $300,00 liability protection the annual insurance rate is $140 for residents of Rhode Island.
- For car insurance:
MAJOR PLAYER IN RHODE ISLAND
- Amica is rated A+ by A.M. Best Company as of January 24, 2019.
- Rated A+ by the Better Business Bureau.
- Selected by J.D. Power as "Highest Possible Satisfaction."
- Amica is the top writers of homeowners insurance in Rhode Island by direct premiums written with the largest market share of 16.3% in 2018.
- The company also has a market share of 11.5%, 3rd in the ranking, in relation with private passenger auto insurance by direct premiums in 2018.
ALLSTATE INSURANCE COMPANY
COMPANY OVERVIEW
- Allstate spent $1 billion to acquire Esurance.com, a D2C acquisition channel for their product and services.
- Allstate is a top D2C insurance company in Oregon in terms of home and auto insurance.
- A top auto and home D2C insurance company in Rhode Island.
- The company is also one of the top auto and home insurance companies in Texas.
- Allstate is an 85-year-old company, largest publicly held property and casualty insurer in the US.
- They protect 16 million households from life uncertainties.
COMPANY REVENUE
- Their revenue was $39.82 billion in 2018.
PRODUCTS AND SERVICES
- They offer auto, home, renters, condo, motorcycle, business, life, roadside, identity insurance.
- Additionally, they also have products and services in boat, motorhome, snowmobile, ATV, pet, event, landlord, retirement, and voluntary employee benefits.
PRICING DATA
- Rhode Island renters:
- For coverage of $20,000 for personal property in renters insurance, with a $1000 deductible, and $100,00 liability protection the annual insurance rate is $143 for residents of Rhode Island.
- For coverage of $40,000 for personal property in renters insurance, with a $1000 deductible, and $100,00 liability protection the annual insurance rate is $238 for residents of Rhode Island.
- For coverage of $40,000 for personal property in renters insurance, with a $1000 deductible, and $300,00 liability protection the annual insurance rate is $258 for residents of Rhode Island.
- Texas renters:
- For coverage of $20,000 for personal property in renters insurance, with a $1000 deductible, and $100,00 liability protection the annual insurance rate is $405 for a resident of Texas.
- For coverage of $40,000 for personal property in renters insurance, with a $1000 deductible, and $100,00 liability protection the annual insurance rate is $809 for a resident of Texas.
- For coverage of $40,000 for personal property in renters insurance, with a $1000 deductible, and $300,00 liability protection the annual insurance rate is $813 for a resident of Texas.
- For cars in Rhode Island:
- The average annual premium costs $3,089 in Rhode Island.
- For cars in Oregon:
- The average annual premium costs $1,688 in Oregon.
- For cars in Texas:
- For good drivers, the average price per year costs $2,497.
- For drivers with poor credit, the average price per year costs $4,116.
- For drivers with one at-fault crash, the average price per year costs $3959.
- For low mileage drivers, the average price per year costs $2,340.
- For minimum coverage, the average price per year costs $760.
MAJOR PLAYER IN RHODE ISLAND AND TEXAS
- Allstate owns the largest share of the Rhode Island homeowners insurance market.
- The company is also popular among Rhode Island residents because of its flexible policy options, discounts, and educational tools.
- It was also rated A+ by A.M. Best for financial strength.
- Allstate has an interactive online learning center that helps customers better manage their policies.
- Allstate has the second largest market share in Rhode Island in terms of homeowners insurance by direct premium with 12.4%.
- Allstate ranked 4th in the top 10 writers of private passengers' auto insurance in Rhode Island by direct premium with 10.8% market share.
- Allstate has a market share of 11.2% in relation to auto insurance, 3rd in rank, in Texas. It is one of the largest car insurance companies in the said state.
Research Strategy:
The research team searched for pre-compiled data of the top D2C insurance companies in each specified state (RI, OR, and TX). However, most of the sources we found containing top/best lists on D2C insurance focused generally on top insurance companies with no real mention of whether the entities were relevant. To clarify if the listed companies incorporated a D2C model, we browsed news articles and press releases, including listed company news sections, Forbes, Business Wire and others, to find mention of whether the companies listed as top were D2C. Through this, we found out about the collaboration of iPipeline and Amica which suggests a D2C platform and collaboration with Esurance and Allstate which also suggests a digital platform incorporating a D2C model.
Once we confirmed that these companies were D2C insurance companies, we identified whether the two companies were major players in any of the three state markets. For this research, the team assumed that a major player should at most be in the top five largest market shareholders in one of the three states. We browsed annual reports, and government databases and found a report that listed the market share of Amica and Allstate in Rhode Island.
Next, we browsed each company's website for additional details such as descriptions, awards, and lists of their products and services. Then, we searched in different databases such as Crunchbase, Owler, and Fortune500, to get the revenue information of each company.
Please note that we were unable to find all the pricing data of the product and services offered by the two companies despite extensive research. We attempted to find the needed details by, first, looking into each company's website to find a price matrix of some sort of a list of prices. When we couldn't find any information regarding the pricing data, we browsed websites that compare different insurance rates such as Compare Online Quotes, Insurify, and others. However, this line of researching was fruitless because it required inputting very detailed personal and insurance-related details like the age of the car, brand, beneficiaries, etc. The specificity of the information requested was likely to completely throw off the results.
We also searched for articles and reports in NerdWallet, The Zebra, and other related websites about the cheapest insurance rates in the three states. We conducted this line of research in the hope of finding relevant data about the pricing of the companies involved because to prove that a company has the cheapest price it should have data on all the insurance rates. For Amica, we were able to find a report of the average annual rates for renter insurance in Rhode Island and an average premium rate of car insurance in Rhode Island and Texas. For Allstate, we were able to find a report of average annual rates for renters insurance in Rhode Island and Texas. Also, we found a report of the average premium rate of car insurance in Rhode Island and Oregon, as well as, car insurance rates in Texas. Additionally, we also learned the market share of Allstate in Texas through one of the reports.