D2C Insurance Market

Part
01
of three
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

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:
    • The average annual premium costs $1,482 in Rhode Island.
    • The average annual premium costs $1,148 in Oregon.

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

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.


Part
02
of three
Part
02

D2C Insurance Competitive Analysis - 2

Progressive and Liberty Mutual are the third and fourth top direct to consumer (D2C) insurance companies in Rhode Island, Oregon, and Texas.

Progressive

  • Progressive was founded in 1937 in order to reduce the trauma people felt after automobile accidents.
  • Progressive values honesty and integrity above all. While Progressive values profit, the company understands that profit must come from excellence.
  • Revenue: The company's revenue was $31.98 billion in 2018.
  • Products: Progressive's products include insurance for general automobiles, RVs, motorcycles, travel trailers, boats, classic cars, snowmobiles, ATVs, golf carts, PWCs, segway, and home insurance.
  • Pricing information: Progressive's average price is $232 for Rhode Island and Texas and $167 for Oregon. All prices are on a monthly basis.
  • According to research from Reviews that used data from J.D. Power and Consumer Reports, Progressive was determined to be the third top player in Rhode Island due to its market share as well as consumer satisfaction.

Liberty Mutual

  • Liberty Mutual was founded in 1912. The company is committed to selling a broad array of insurance that fits everyone's needs.
  • Liberty Mutual is the third largest casualty insurer in the market. It is a D2C insurance company as shown by its Personal Coverage section.
  • Revenue: Liberty Mutual's revenue was $41.57 billion in 2018.
  • Products: Liberty Mutual's products and services include car, motorcycle, watercraft, home, renters, condo, life, and small business insurance among others.
  • Pricing information: Liberty Mutual's pricing in Rhode Island is about $636 for homeowner's insurance. Liberty Mutual is extremely customizable in Oregon and Texas, thus, average pricing is not listed.
  • Research cited from Reviews which used data from J.D. Power and Consumer Reports found that Liberty Mutual was the fourth top player in the insurance market in Rhode Island based on market share as well as consumer satisfaction reports.
Part
03
of three
Part
03

D2C Insurance Competitive Analysis - 3

Geico is a top company offering direct to consumer insurance in Rhode Island, Oregon, and Texas. Geico offers vehicle, property, and business insurance.

GEICO

REVENUE

  • The company's estimated revenue is $1,899.51 million.

PRODUCTS AND SERVICES

  • Geico offers vehicle, property, and business insurance.
  • The company offers auto insurance, motorcycle, ATV, RV, and boat insurance, homeowners, renters, condo, Co-op, and mobile home insurance, personal umbrella protection, life insurance, flood insurance overseas insurance, business owners' policy, professional liability insurance, general liability insurance, commercial auto insurance, collector car insurance, identity protection, and jewelry insurance.

PRICING

TEXAS

  • Geico Auto insurance average price for good and poor credit drivers is $2,601 per year and $217 per month.
  • Geico Auto insurance average price for drivers with one at-fault crash is $3,854 per year and $321 per month.
  • Geico Auto insurance average price for drivers with low-mileage is $2,363 per year and $197 per month.
  • Geico Auto insurance average price for minimum coverage is $886 per year and $74 per month.

RHODE ISLAND

  • Geico Auto insurance average price for good drivers is $1,886 per year and $157 per month
  • Geico Auto insurance average price for poor credit drivers is $2,699 per year and $225 per month.
  • Geico Auto insurance average price for drivers with low-mileage is $1,704 per year and $142 per month.
  • Geico Auto insurance average price for minimum coverage is $820 per year and $49 per month.

OREGON

  • Geico Auto insurance average price for good drivers is $1,221 per year and $102 per month.
  • Geico Auto insurance average price for poor credit drivers is $1,877 per year and $156 per month.
  • Geico Auto insurance average price for drivers with low-mileage is $1,113 per year and $93 per month.
  • Geico Auto insurance average price for minimum coverage is $566 per year and $47 per month.

MAJOR PLAYER

  • Geico is ranked second in the 2019 J.D. Power U.S. Auto Insurance Study for Texas. The company had a rating of 836 based on a 1,000 point scale for overall customer satisfaction.
  • According to Quotelab, Geico is ranked the eighth largest auto insurer in Oregon by market share. It has a market share of 2.8%.
  • The Simple Dollar ranks Geico as the second best car insurer in Rhode Island. The list was made basing on customer satisfaction survey scores by J.D. Power and A.M. Best financial solvency ratings.
  • The company is among the cheapest auto insurers in Oregon and Rhode Island.

RESEARCH STRATEGY

We started the research by searching for pre-compiled data of the top D2C insurance companies in each specified states. 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. We were able to find a report that indicated that Geico has implemented the D2C model since its inception.

We were unable to find all the pricing data of the product and services offered by Geico despite extensive research. To find this information, we looked into the company's website to find a price matrix of some sort of 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 and beneficiaries.

We also searched for articles and reports in NerdWallet, The Zebra, and other related websites about the cheapest insurance rates in the three states. This strategy only gave us information about pricing for auto insurance but we could not find any more data.

Sources
Sources

From Part 01
Quotes
  • "Amica is a direct writer of personal insurance with auto, homeowners, personal excess liability and marine coverages. The company is known in the insurance industry for its financial strength and exceptional customer service."
  • "1907 – Amica is the oldest mutual insurer of automobiles in the United States."
  • "A+ (Superior) from A.M. Best Company as of Jan. 24, 2019*"
  • "Repeatedly recognized for exceptional service in auto and homeowners insurance surveys by a leading consumer publication."
Quotes
  • "Amica does not use agents to sell its insurance products. Whether you contact Amica by telephone, email, or U.S. mail, you will have direct contact with an Amica representative. You'll always get a friendly response, and we'll keep you informed regarding your application, policy change, claim, or other transaction. Our service team works directly with you – no middle agent – so you'll never have to wait to speak to one particular person."
Quotes
  • "In 2018, Amica’s earned premiums totaled $2.3 billion, and net income was $136 million."
Quotes
  • "Boasting an A++ rating from A.M. Best, the highest possible, and selected by J.D. Power as “Highest in Overall Satisfaction” among New England homeowners for the fifth consecutive year, Amica Mutual Co offers some of the best homeowners insurance in Rhode Island. Its success at customer satisfaction is also reflected in Amica’s A+ rating from the Better Business Bureau."
  • "Allstate.com owns the largest share of the Rhode Island homeowners insurance market. The company is popular among residents of the Ocean State due to its flexible policy options, multiple discount opportunities, and top-notch educational tools and resources. Allstate has an A+ rating (“superior”) from A.M. Best for financial strength."
  • "Allstate’s innovative online learning center features an expansive library of articles, videos and tools to help customers better manage their policies and answer questions on homeownership."
Quotes
  • "How is the 85-year old, largest publicly held property and casualty insurer in the US preparing for digital disruption in insurance?"
  • " In 2011, Allstate spent $1bn to acquire Esurance.com, an online only direct-to-consumer acquisition channel for its auto, home and life insurance lines, and Answer Financials, a carrier neutral insurance agency that allows comparability across insurance products from various insurers"
Quotes
  • "Founded in 1931, Allstate is the nation’s largest publicly held insurer for personal lines. We protect about 16 million households from life’s uncertainties, living up to our famous pledge: “You’re In Good Hands With Allstate.”"
Quotes
  • "iPipeline® – a leading provider of cloud-based software solutions for the life insurance and financial services industry – today reported Amica Life Insurance Company, a national provider of life and annuity insurance products, is partnering with iPipeline on its groundbreaking digital transformation project. The collaborative effort will result in one of the industry’s most integrated, end-to-end direct-to-consumer (DTC) experiences, making it easier and faster for consumers to purchase life insurance in a fully digital environment. The project features seamless integration of iPipeline’s Illustrations, iGO® e-Application, and Resonant® automated underwriting products with Amica’s policy administration system."