Inductis Releases a White Paper on Auto Insurance: Systemic Shift to Direct Relationships in U.S. Auto Insurance: Implications for Insurers

The paper written by Mr. Arnab Dey, Associate Principal, Inductis and Mr. Frank Cacchione, an Associate Partner at Inductis and CEO, TNC Management Group, emphasizes on how the U.S. Auto insurance market is experiencing a major restructuring.

"The focus of this white paper is on the fact that the consumers are relying less on their agents and looking at direct insurers and this shift is a result of the gradual but powerful market forces that have emerged over the last decade," says Mr. Dey.

The paper talks about massive advertising and branding designed to drive consumers directly to an insurer's call center or web site, the emergence of more sophisticated pricing models to accurately estimate the price point at which any risk profile becomes profitable and should be insured, and increased consumer acceptance of the direct response model, as factors responsible for this shift.

According to Mr. Cacchione, "Over the next decade, these market forces are expected to accelerate the erosion of share of agent-produced business, both independent and captive. Sustainable growth will go to those carriers that can invest in building the right capabilities to grow the direct channel while managing channel conflict."

The white paper extensively explores the shift of the auto insurance sector, the market forces driving it and channel conflict.