Did the Insurance Industry Expect Google Compare to Close its Doors?
The news regarding the failure of Google Compare is on everyone’s tongue. Some industry watchers believe it’s a temporary setback whereas insurers who saw them as a viable threat are cheering silently. In the INN article entitled “Why You Shouldn’t Expect Google To Give Up On Insurance,” Nathan Golia referenced Ellen Carney of Forrester as saying this is a minor setback for Google and that she believes “they will learn from their mistakes, tweak their offering, and relaunch.” In her blog entitled, “‘Insurers Should Embrace Lessons from Google Compare,” Barbara Smallwood agrees with Carney; she also believes Google will retool and relaunch. As the insurance industry evolves, consumers depend on industry thought leaders to educate them on the whats and whys of the insurance industry.
As I read each article, a 2-year-old article that was featured in LifeHealthPro magazine came to mind, “What if Google and Amazon Sold Insurance” by John Sarich of VUE Software. In his article, Sarich mentioned that after WWII, Sears Roebuck, who dominated retail at the time, decided to offer insurance products and created Allstate, which has been successfully selling insurance since. He infers that if Google or Amazon tries to sell insurance, a different outcome would ensue. In his article Sarich asks, “IF a non-insurance retailer could do it then, why not now?” His answer is quite succinct and Google’s failure in the insurance industry proves him right. To read the full article click here. This article gives us food for thought; did the insurance industry expect Google Compare to fail?