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Google Auto Insurance

alangolding25

alangolding25

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Google recently launched their Google Compare website.
https://www.google.com/compare/autoinsurance/form?p=home

This will be a game changer when it comes to Canada. Its possible Google will offer insurance themselves down the line.
Really going to be a great tool to help you get the best tool possible.
Will hopefully open up the eyes of the Insurance industry in Ontario particularly, and hopefully eventually bring the rates down knowing that their prices will be issues and used on Google's insurance tool.

Right now its for California only, with views to expand fully to the US after that...and so on.....will be great when it hits Canada. Insurers will have to get on board. Making it a central one stop shop competitive insurance market.
 
IF. IF it comes to Canada.

There are certain restrictions and such when it comes to information, be it insurance or real estate or whatever.

Look at what the real estate board is trying to pull to keep more and more information away from the average consumer. They've had Zillow in the US for a while, why isn't it up here?

Expect a similar fight with insurance companies. They know they have a good thing up here so they'll hold on to it as long as they can. More likely, 'lower' rates will also mean lower levels of coverage. I wouldn't hold my breath.
 
That's nothing new in Canada, it's been around for the last 10 years, I can name 4-5 websites off the top of my head that already do that.
All you have to do is input your information and it will shop for the best rate.

I can assure you none of the companies that work with Google will ever come to Canada.
Google would have to get contracts with the existing insurance companies already doing business here.
 
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It is an IF , in it coming to Canada for sure. But seeing the some of the bigger insurers operate both in the States and Canada I think that it is realistic for it to come here.

As for them putting up a fight, it is Google. They nearly always get their way.

Yes there are sites that currently do something similar. But things to consider are

- These current sites technologies are very poor typically, they have only so much providers on offer
- Google will be partnering with with a number of large providers, it will be a dominant platform for providers to get in on it and put in their business. Otherwise they risk falling behind.
- A lot of insurers still do business over the phone, this will make it almost an entire online experience, which is the modern way of doing business ( the millenial generation of consumers)
- Insurance industry on a whole has left itself vulnerable to tech giants like Google by still using the same old ways of doing business, they dont work as well as they use to

Sure there are a lot of niggly bits to work out, it literally has just launched. But I think its a step in the right direction and will be a game changer in the future. There is not much that Google invests in that isnt a game changer.

(Im not a google head but I think this will eventually have a positive impact for insurance consumers)
 
There are several inherent problems with our insurance companies.
1) They are used to certain profit levels and if these drop the shareholders will react by dumping stock. This will affect RRSPs etc that are invested in the companies.
2) To reduce payouts the government will have to spend more money fighting fraud. Money that they would prefer to spend on bridges to nowhere.
3) The insurance companies will have to deal with their internal inefficiencies. They may have to work with the government in the fraud fight.

I'm not sure how the Google system works but some of the dial-a-rate systems charge the insurance agencies a fee for each referral, whether it results in a policy or not.
 
That report was done by IBC itself .... Not exactly credible and rather expectable outcome. Secondly, it's business so they always try to maximize the profits and will have a problem with any cut at any time. It's simply not in the best interest of the shareholders.

If the government is interested in cutting the rates, perhaps they need to run the program themselves and show the insurance companies how to get it done ... Or not.
 
mxs said:
That report was done by IBC itself .... Not exactly credible and rather expectable outcome. Secondly, it's business so they always try to maximize the profits and will have a problem with any cut at any time. It's simply not in the best interest of the shareholders.

If the government is interested in cutting the rates, perhaps they need to run the program themselves and show the insurance companies how to get it done ... Or not.
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Or maybe think that if it was so massively profitable you would have many many more players jumping in . It's not like it's hard to start an Insurance company or an MGA if you have the capital
 
You don't think there's many players currently on the Ontario market? I always think the opposite ... if it's so low profit business why do we have so many of them right now? Nobody is forcing them, not the government, not the consumers .... yet they keep complaining about low profits? Why? Because the stakeholders have never enough ...

I don't know what you consider "massively" profitable .... Maybe, it does not yield like digging oil or selling iPhones, but I think it's far from the low the IBC is portraying it to be.
 
I'm not sure I'm following that article correctly. Are they implying a loss (reduction in profit %) compared to other years or a loss in general. The insurance industry also seems a have a way of playing with numbers to make their point look better. I'm sure the insurance companies might not be be making as much profit as they did during their peak levels. But I seriously doubt they are actually losing any money. My guess is they are not making as much and as such are fighting back. In other words making a 15% profit total may not be good enough for them, they want to be making 15% more profit than they did the year before while at the same time they were making x% profit that year already.
 
mxs said:
You don't think there's many players currently on the Ontario market? I always think the opposite ... if it's so low profit business why do we have so many of them right now? Nobody is forcing them, not the government, not the consumers .... yet they keep complaining about low profits? Why? Because the stakeholders have never enough ...

I don't know what you consider "massively" profitable .... Maybe, it does not yield like digging oil or selling iPhones, but I think it's far from the low the IBC is portraying it to be.
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Then look up their financials they are all posted online
 
250R-ICE said:
I'm not sure I'm following that article correctly. Are they implying a loss (reduction in profit %) compared to other years or a loss in general. The insurance industry also seems a have a way of playing with numbers to make their point look better. I'm sure the insurance companies might not be be making as much profit as they did during their peak levels. But I seriously doubt they are actually losing any money. My guess is they are not making as much and as such are fighting back. In other words making a 15% profit total may not be good enough for them, they want to be making 15% more profit than they did the year before while at the same time they were making x% profit that year already.
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They are losing money on personal insurance especially auto.
 
sonnythebull said:
They are losing money on personal insurance especially auto.
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Serious question: Where are they making the money? How do they keep the lights on and cover the loses on Personal Insurance products?
 
nfq said:
Serious question: Where are they making the money? How do they keep the lights on and cover the loses on Personal Insurance products?
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Profits from a previous year,investments, currency trading etc... , and commercial business sometimes. Insurance companies have always run at almost 100 percent or more in expenses and leveraged their money during the year to try and eek out some profits. Some also have other lines like life and benefits they might profit from . Why does everyone ***** about the insurance companies and no one seems to care that the banks each make over a billion each quarter profit????

http://www.ehow.com/how-does_4564303_do-insurance-companies-make-money_.html

And EVEN THE BANKS BLEED ON INSURANCE THEY ARE IN
http://t.thestar.com/#/article/busi...nce_side.html?referrer=https://www.google.ca/
 
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BrownBrady said:
The only real way to drive down insurance prices and to reduce fraud is to stop making it mandatory. Have the driver assume all the risks like paying for repairs and lawsuits.
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Agreed! It works well in Australia. I rode out there for 5 years. Average price a year was $300. I knew riders who rode around with no insurance. Obviously if something happened you would hope they have deep pockets but as you said, it would certainly drive down Insurance prices.
 
sonnythebull said:
Profits from a previous year,investments, currency trading etc... , and commercial business sometimes. Insurance companies have always run at almost 100 percent or more in expenses and leveraged their money during the year to try and eek out some profits. Some also have other lines like life and benefits they might profit from . Why does everyone ***** about the insurance companies and no one seems to care that the banks each make over a billion each quarter profit????

http://www.ehow.com/how-does_4564303_do-insurance-companies-make-money_.html

And EVEN THE BANKS BLEED ON INSURANCE THEY ARE IN
http://t.thestar.com/#/article/busi...nce_side.html?referrer=https://www.google.ca/
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Thanks. That cleared up some things.

Isn't it a big risk for banks to be in a 'money losing' sector like insurance? Or do they still find a way to make money ?
 
alangolding25 said:
Agreed! It works well in Australia. I rode out there for 5 years. Average price a year was $300. I knew riders who rode around with no insurance. Obviously if something happened you would hope they have deep pockets but as you said, it would certainly drive down Insurance prices.
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Australia is one thing.

How does it compare to a place like Ontario where we have 4 unique seasons and various population densities?
 
BrownBrady said:
The only real way to drive down insurance prices and to reduce fraud is to stop making it mandatory. Have the driver assume all the risks like paying for repairs and lawsuits.
Click to expand...

Like the rest of the developed world ...
 
nfq said:
Australia is one thing.

How does it compare to a place like Ontario where we have 4 unique seasons and various population densities?
Click to expand...

Europe faces the same demographics and weather ... at least the countries I have an actual experience with. 4 seasons does not automatically mean higher exposure .... the weak driving training/testing in Ontario is much bigger problem. I guess, most of the bad/weekend drivers would not prefer to assume the risks, they'd rather be "covered" from head to toe. Anyway, we are digressing, it's more complicated than that of course.

Back to the profits topic. Again, I would expect all companies to close the non-profitable business. Banks, typically, don't have non-profit units ... they either make them profitable quickly or they sell them. They like money too much, not like some small private establishments which will take losses for years to keep jobs open, before they close door.

I am simply not buying that they are not making enough for them to keep their interest healthy. It's like with the Beer store .... who claims to make no money, yet they fight like wolverine.
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