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October 1 - 3, 2000, The Westin Providence, Providence, R.I.
Instant Quotes Online Will Become the Norm
By Brendan Noonan, Brendan.Noonan@ambest.com
Fidelity Investments' Internet insurance portal is bucking e-commerce's breakneck pace, methodically building its brand and capabilities and carefully choosing its partners with an eye to the long term.
The focus of the online insurance world should be on delivering products and useful content to customers, not merely establishing a presence on the Web, said Lou Geremia, president and founder of Insurance.com, who was preparing to present his company's strategic plan to Fidelity's board on Tuesday.
Geremia said the insurance industry is still in the midst of a development process that will culminate with the ability to deliver solid quotes and bind insurance coverage online in real time, with follow-up personal service a phone call away. "When we get there, we're all going to be excited," he said.
In time, the ability to do instantaneous transactions will be vital. He cited a survey on consumers' expectations of online insurance shopping: They want three to five quotes per request from brand-name carriers, and more than half plan to make a purchase within one day to a week. "If you don't satisfy that need right then, they're on to the next site," he said.
For now, Geremia said, the capabilities of noninsurance e-commerce sites have raised consumers' expectations beyond what insurance portals can deliver with existing technology.
Insurance.com is building alliances, focusing on financial institutions--"the organizations that control the financial relationship with the consumer," Geremia said. But it is remaining flexible in its choice of partnerships and fully expects agents to retain an important role in insurance purchases, because many customers still want guidance. "They want to hear that they're doing the right thing," he said. That ability will give agents "a leg up from some of the pure plays" in online insurance sales, he said.
Insurance.com's relationship, with its own parent--Fidelity--includes an "insurance center" on Fidelity's Web site. It includes content from Insurance.com, but it maintains the look and feel of the Fidelity site. Eventually, Insurance.com expects as much as 40% of its traffic to come through Fidelity's site, Geremia said. He noted that Fidelity is already in the insurance business, with term-life products and an annuity business that would be worth $2 billion to $3 billion if spun off as a separate company.
Insurance.com plans to build its brand in conjunction with the well-established identity of Fidelity, but Geremia said the online insurance business still is at a point where customers don't set out to visit a particular insurance site. Instead, they "click on whoever's there" when the need arises, he said.
Insurance.com was launched in June 1999 and went online with its retail Web site in March 2000, offering automobile, homeowners, health and life insurance from multiple companies. It started a national advertising campaign in June 2000, concentrating on national print ads with a low-key look that contrasts with the splashy advertising often associated with online companies. Insurance.com plans to add annuities, long-term-care insurance and pet insurance to its product offerings in the third quarter.
Before joining Insurance.com, Geremia was a senior vice president at Banc One/First USA Bank, in charge of building strategic marketing partnerships with financial institutions, corporations and online companies. He had previously held marketing and strategy positions with Fidelity, Providian Direct Insurance and Travelers Life Insurance.
Geremia spoke at "E-Fusion: Where Insurance and Technology Converge," a conference sponsored by A.M. Best Co. held Oct. 1-3 in Providence, R.I. Full coverage of the event is available online at http://www.ambest.com/e-fusion.html. | 
