Safeco Corp. has added commercial automobile insurance to its menu of products offered through a platform that lets agents quote, bind, and instantly issue policies online.
The platform gives agents the opportunity to sell the insurance in minutes, and a Safeco executive said it gives banks a chance to make a bigger dent in commercial property/casualty insurance through agencies they own.
The Seattle insurance company offers the system specifically to independent agents.
"The concept is simple, the underwriting is automated, so in five minutes, the agent will get an automated quote that they can bind," said Mike Hughes, a senior vice president of underwriting at Safeco Business Insurance, a division of the insurer. "In five to 10 minutes, the deal can be completed, from start to finish."
Safeco started the platform last Wednesday in 11 states and expects it to be available nationwide by mid-October. The company said it plans to offer other commercial property/casualty lines through the system by yearend.
"We'll roll out workers' compensation in November and have it nationwide by January," Mr. Hughes said.
Many banks have expanded into commercial property/casualty insurance by acquiring independent agencies.
But Safeco's expansion, with what it calls ESP, is not only for commercial property/casualty insurance. It also will put personal property/casualty insurance online this year, the company said.
Safeco has offered term life insurance through its automated Internet-based system, Safeco Now, since last year. It also offers term life insurance through banks.
The company said this year that it expected to sell 15,000 to 20,000 term life policies through banks in 2003.
It also offers mutual funds and annuities through banks.
