CoverWallet for Agents: Your Online Access to the Small Commercial Market?

You may have heard of CoverWallet as a new insurance technology startup that offers small business insurance coverage direct to consumer. Most traditional insurance agents consider CoverWallet as the enemy trying to take their business.

CoverWallet for Agents

While that may still be the case, last week CoverWallet announced a new service for insurance agents allowing them access to CoverWallet’s technology platform. The platform is called CoverWallet for Agents.

I had an opportunity to preview the platform and hear details of how the service will work. Following is a bit more information so you can decide if this is an opportunity worth exploring or a continued threat to your business.

A Look at CoverWallet for Agents

Just like CoverWallet’s direct to business owner platform, CoverWallet for Agents is an easy way for agents to get quotes, bind coverage, purchase policies, and to service customers online. This is a dedicated platform for insurance agents. Through the technology platform, agents benefit from a fast, simple, and efficient way to provide commercial insurance to businesses, with a single point of entry to access to top carriers for multiple types of policies.

It will function as a small commercial comparative rater for your agency.

Inaki Berenguer, CEO and co-founder of CoverWallet, stated:

“Today there are 40,000 insurance agencies in the U.S., and we are on a mission to make it easy for agents to harness the power of data, design, and technology to serve more clients better and faster than ever before.”

CoverWallet for Agents provides agents with instant quotes, online bindable policies, and real-time proof of coverage. A dynamic online application that uses data and analytics allows agency staff to complete one application and instantly receive quotes from top carriers that are ready to be purchased and bound in real time. The platform is currently integrated with Chubb, Starr, CNA, and AmTrust, with more expected to be added shortly.

Yes, the list is short right now because they are only using insurance carriers that can provide a real-time rate, quote, bind, and payment process. They also have several unique lines of business available on the platform such as Event Insurance.

Some additional benefits to using the platform include:

  • Financing integrated at checkout with a click of a button for customers who prefer to pay annual insurance over time, with multiple forms of accepted payments including credit cards, debit cards or bank account
  • A dynamic and searchable online appetite guide that indicates how likely an account is to get an instant quote based on its location and class of business
  • Automated risk analysis, benchmarking, and data analytics to see what coverage will cost and the policies businesses in a specific industry typically purchase
  • A simple document management system and instant online generation of certificates of insurance
  • Automation for adding additional insureds to policies
  • Predictive analytics for coverage recommendations, as well as peer risk comparisons and claims support

My observations:

  • CoverWallet is actively seeking out the online small commercial business owner. I know very few agents who are actively selling small commercial insurance at all, much less through an online channel.
  • Opening their platform to agents allows them to leverage their technology investment better.
  • This service provides an option to the agency that wants to go after the online small commercial market. This allows that small group to rent the technology instead of building a proprietary platform.
  • Don’t want to sell online? Then you can use their platform to streamline your internal quoting process.
  • It just seems like an exciting potential opportunity that many agents should explore.

In answer to at least some of your questions, here is what I was told by Michael Konialian, the new Vice President and General Manager of CoverWallet for Agents.

  • The agent will own their expirations.
  • They have a very competitive commission schedule. Because their technology platform takes significant friction out of the process of quoting, binding, paying, and issuing a small commercial policy, they can pass the savings on to you, the agent, so you make more.
  • CoverWallet knows that agents continue to control a large segment of the small commercial business.

Please understand that these are my initial impressions. I reserve the right to change my mind later. If interested, do your own homework. Talk to them. Carefully read the contracts. I know this service will not be right for many. I also suspect for the few who see ahead that this could be an opportunity to finally make a move online.

What do you think? I know the skeptics are composing their comments. Please do leave them below.

Steve Anderson provides information to insurance agents about how they can use technology to increase revenue and/or reduce expenses. He speaks professionally to hundreds of agents each year on the future of technology, the social web, and how insurance agencies can establish their Internet presence.

Please note: I reserve the right to delete comments that are offensive or off-topic.

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One thought on “CoverWallet for Agents: Your Online Access to the Small Commercial Market?

  1. A good small business, BOP type, commercial comparative rater is sorely needed but one problem with this type of system is that the production does not go to our Agency’s codes. This leaves us out of the profit sharing potential and the production requirements we have.