Online distribution of commercial insurance has been discussed in the industry and there has been research that suggests some small businesses would feel comfortable purchasing their insurance online. We may see this happen with easy to underwrite Business Owner Policies but the major issue is the underwriting is different from what you would experience with a Scottsdale personal auto policy. Even with home policies, most companies won’t allow you to start your policy without speaking with an agent first because home insurance is not as straightforward as auto insurance is.
So where does this leave businesses and carriers that insure them? Most likely it means that the majority of commercial insurance policies will be accessed through independent insurance brokers as they are now with some carriers testing the profitability of these smaller commercial policies. What the results of that will be no one can say for sure but the truth of the matter is that the independent broker distribution model makes the most sense for the carriers. Beyond the front line underwriting, policy design and other insurance related activities the broker does is a dedicated sales force that the carriers can tap in to without investing in brand recognition. With how much carriers enter and exit insurance markets, this seems to be the most sustainable way to offer Scottsdale Arizona commercial insurance…at least for the time being.
Reposted from Quora: https://www.quora.com/Insurance/Why-is-there-no-on-line-distribution-of-commercial-insurance
