Agents are faced with an increasing array of options to help them get "connected" with prospects and customers. One of the newest options available for agents is the YouZoom Network, a venture of San Diego-based Arrowhead General Insurance Agency, Inc., which, at $300 million in annual premiums, is one of the nation's largest privately held general insurance agencies.
The idea for YouZoom began to germinate in March 1997 when the Arrowhead management team speculated that an increasingly greater percentage of insurance transactions would take place using the Internet. They determined that their organization would not only be ready for the change, but that they would take the necessary steps to leapfrog the competition. The first step was to create an electronic submission system for the agents who already represented them. The next step included an Internet-based policy inquiry system and from that grew online real-time policy binding. The larger nonstandard auto agents were using the existing system. Arrowhead, however, wanted to provide a market for the smaller agents as well. The YouZoom Network was created to meet this goal.
YouZoom enables independent insurance agents/brokers to market and sell a number of insurance products at the agent's own Web site. The YouZoom system enables consumers to compare rates and policy options from leading insurance companies and then immediately purchase policies online. All of this takes place at the agent's Web site using technology built by YouZoom.
Kieran Sweeney, president and CEO of YouZoom, elaborates. "YouZoom provides the independent agent/broker with an e-business-enabled Web site supported by a 24-hour call center. Consumers can get immediate comparative quotes from quality insurance companies and can purchase a policy online or pick up the phone if they have a question. Through YouZoom, customers can handle their insurance needs any way they choose--online, over the phone or in person."
YouZoom was launched at the end of last year exclusively in California. There are currently 25 agents with active Web sites. As of late January 2000, almost 215 have signed up to become part of the network and will come online during the first part of the year.
There are plans for the network to expand during the first half of 2000, adding five other states: Arizona, Florida, Oregon, Texas and Washington. Auto insurance is currently the only product offering. There are plans to add homeowners insurance in California during the first quarter of 2000 followed by additional property and casualty and life insurance products. The relatively slow growth of the network into other states is due to the slow regulatory process in each state. Additional states will be added as time and resources permit.
To join the YouZoom Network, agents/brokers pay $2,500 per year for a customized Web site that includes complete site design, hosting and maintenance as well as access to YouZoom's proprietary e-business technology. Agents must host their site with the network. This requirement ensures that the consumer receives a consistent experience from all agents who are part of the network.
YouZoom gives independent agents/brokers a turnkey entry into the world of e-commerce without the heavy investment of time and money required to establish a Web site capable of transacting business online.
Consumers benefit from being able to select from quotes provided by multiple A rated insurance carriers. Customers can receive their quotes in seconds after a five-minute application process. They then can review their options and purchase a policy over the Web immediately. Most other sites that consumers could go to don't have the ability to allow the individual to complete the purchase transaction online.
One of the biggest advantages (and one that justifies the cost of the network) is the 24-hour, seven-day per week customer call center. YouZoom understands that the key to a positive online experience for customers is being able to contact a real person if the customer wants to, when he/she wants to. Because of this flexibility, customers will be able to purchase their policy and be able to handle payments, claims and changes any way they choose: online, over the phone or in person. One of the interesting online contact options is real-time instant messaging. If you are on a Web site and have a question, you can click on the message button and be connected with a real person who can answer your question right then.
YouZoom provides a way for agents to begin selling insurance through their own Web site in less than 60 days with minimal expenditure. The network will begin advertising the YouZoom name so that consumers will be drawn to the YouZoom site and then to individual agents' sites. Because of Arrowhead's size, it has the ability to add new product lines and to build new partnerships with carriers that will expand the agents'/brokers' business.
"Most of us independent agents/brokers understand that we need to be able to handle insurance transactions online if we are going to succeed in this industry. But it takes a lot of time and money to create those capabilities," says Douglas Cohen, CIC, with Professional Choice Insurance Services, Inc., of Los Alamitos, California (www.ensurance.com). "YouZoom makes it easy and inexpensive for agents like me to achieve this now. Not only can we market ourselves online, but we can also offer comparative quotes and sell in real time. That's very exciting for our business."
A YouZoom agent sold the first policy online the second day the site was available. While the network is still new and statistics may not be completely accurate, early numbers show that when consumers start the shopping process--that is, they have a quote and wish to purchase--90% are completing the process and paying for the new policy online.
"Many insurance companies advocate using the Internet to sell directly to the consumer, bypassing the agent/broker. We see the consumer's ability to access an agent/broker as an enhancement to the transaction of insurance online," Sweeney says. "YouZoom Network sites offer quoting and purchasing capabilities that match or exceed the best 'direct' sites and add greater value by offering product selection and the assurance that if a customer needs help--in selecting coverage or resolving a claim--they can turn to their professional agent/broker." *
The author
Steve Anderson has been a licensed independent agent for over 20 years. He heads American Insurance Consultants (AIC), which provides products and services that help agents maximize profits using commonsense technology. Visit his Web site at www.steveanderson.com. He can be reached via e-mail at steve@SteveAnderson.com or by phone at (615) 599-0085.
For more information ...
YouZoom, Inc.
San Diego, California
Contact: Deana Giforos
Telephone: (800) 669-1889, Ext. 687
E-mail: dgiforos@youzoom.com
Web site: www.youzoom.com
©COPYRIGHT: The Rough Notes Magazine, 2000