During the last decade websites used for comparing auto insurance rates such as onlineautoinsurance.com and insurance.com as well insurance firms’ own websites have become a popular way for consumers to shop for insurance. By 2005 it was estimated that nearly 70% of insurance shoppers used the internet to obtain price quotes[1]. Naturally, this kind of ready access to price comparisons has lead to a more price competitive market and commoditization. I sat down with John Lucker, a Principal at Deloitte Consulting LLP, to discuss the auto insurance industry and how firms can creatively package and price insurance to overcome any commoditization of their product.
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