Safeco adds online distribution strategy
Seattle-based Safeco Insurance Companies has decided to sell products via the Internet to supplement its existing sale channel of independent agents. The company said it believes online sales will help it reach a new customer segment that prefers purchasing insurance on the Web without an agent’s assistance.
According to Michael LaRocco, president and COO, Safeco believes it can expand its reach to new customers while maintaining its primary focus on the independent agent channel. “Our desire is to grow as a company and become a better partner for you,” he told agents. “Extending our distribution reach in non-traditional ways will help us strengthen our brand recognition and improve our knowledge of the marketplace in ways that will benefit Safeco and you.”
Safeco plans to “conservatively” market to auto consumers who prefer buying online and by phone.
The company has set up a call center for consumers who wish to buy over the phone from Safeco. Direct marketing mailings will suggest consumers either click Safeco.com or call 1-800-4Safeco.
Meanwhile, the company hopes to better leverage Safeco.com using Internet advertising, direct marketing and other promotions. However, agents will still be featured on Safeco.com, giving consumers the choice.
Safeco has attempted to integrate agents into the online sales process through its Virtual Producer program but this program will be discontinued as of June 1. The 120 agents participating in that program will be notified soon.
Business written through agency web site links to Safeco.com will pay full commission on sales and renewals, LaRocco said.
LaRocco said the company believes the supplemental channel will add value for its agency partners.