Posted: September 13th, 2017

A comparison of how Internet based insurance companies compete against the retail agent distribution model.

Paper, Order, or Assignment Requirements

This project is designed for you to investigate an economic research question of your choice.
The assignment is a 15-page research paper that will be developed over the balance of the term.
In addition to obtaining and applying economic research, this project will help you improve your
academic writing as I will provide you with current research methods and critical writing
techniques.
A summary of the paper�s criteria:
? A research question, hypothesis, and thesis
? Must follow my organizational guidelines (I will provide these)
? Application of a least one major economic principle/model
? Must have a minimum of ten quality references

For the past decade companies like Geico and Progressive have leveraged technology and targeted consumers who like to purchase insurance online and changed the way consumers purchase auto insurance. In the past companies like: State Farm, Allstate and Farmers, all used exclusive agents to sell insurance products. The trusted advisor value proposition has been the competitive advantage of these companies. Now, rather than investing in the agency force, Internet based companies focus on creative marketing to attract the online savvy consumer. The focus of this paper is to highlight why consumers are now purchasing their insurance online. Is it convenience of being able to purchase insurance from the comfort of their home? Is it the creative marketing that attracts consumers? Or is it the competitive pricing?

In the past few years, online-based insurance companies have jump up the ranks in market share. Some experts will argue that the amount of money spent in marketing is far greater than profits and not sustainable. I seek to understand purchase behaviors and why consumers are buying online. This will help forecast whether the agent distribution model is a thing of the past or if it is here to stay.

12 pages is ok