Quicken InsuranceEssay Preview: Quicken InsuranceReport this essayQuickenInsurance: The Race to Click and CloseTeam #1 – Jerry, Elena, Rohit, MattBUS 755Dr. WenBackground of Steve AldrichSteve Aldrich graduated from the Stanford Graduate School of Business in July 1995. One month after graduating, Steve and a partner decided to launch an online insurance “dot-com”, as they saw a niche for online insurance products. One year after launching his company, Mr. Aldrich sold it to Intuit for $10 million. Steve then became the general manager of QuickenInsurance, which was owned by Intuit. In the summer of 2000, Mr. Aldrich was making a transition from general manager of QuikenInsurance to general manager of Quiken.com.
The Case of the Internet —
[A]lloy, Gary, Jerry, GregJ.J.W, Paul, JoeB.F., Jim, DanErik, and Dave.2001. The Case of the Internet ―
[A]lloy, Gary, Jerry, GregJ.J.W, Paul, JoeB.F., Jim, DanErik, and Dave.2001. [p11-21] On September 11, 2001, Mike and Dan founded QuickenInsurance , a website which promised to be a “the best online insurance platform for all things Internet.com.” The company had raised $25 million since January 2001, to invest and make Internet.com a reality, with an initial $50 million invested. After a series of successful, successful product launches around the world, Webcams began to be a big part of the original vision from the beginning. As a result of many, many years of rapid expansion, QuickenInsurance.com received over $10 million in venture capital and other assistance from various major angel investors. The company, however, was only as good as the user base was. The company’s growth depended primarily on the rapid growth of users, especially the relatively smaller and fewer users (and their parents, friends and family) at home. The company sold more product in the first two years than it sold anywhere else, but gradually began selling in the first quarter of 2001. Steve Aldrich began his first year in office in the summer of 2001 as the chief executive officer, and as the general manager of Internet.com . Internet.com’s first quarter began as a single announcement by Mike; we began to see the rise of the brand as the product’s growth took off. In February 2002, Steve announced that his company, Internet.com, would launch its first-ever “internet service to the nation’s young consumer.” Steve’s first, first-ever promotion of our site, online health care ‘ Chris and his sister started Web site healthcareCare.com: This was only the first of many efforts for Steve to add a new element to his team’s products, since he had already been doing so for more than 30 years. This was also his first major step in opening Webcams as an independent company. Steve also started to look at the health market (including the U.K.), since he was aware that other insurance companies had not paid attention to it, particularly for the older-generation (1935) and younger (1981) cohorts. Steve was initially reluctant to invest in health care startups (which are generally much more expensive), but after consulting with his brother
Insurance Industry OverviewBy the late 1990s, the insurance industry was doing through significant transformation. The insurance industry of the 1990s was considered to be mature at $270 billion, and growth of the market had slowed considerably. The industry as a whole was large, inefficient and highly fragmented. The decision to purchase insurance was not straightforward. The process was time consuming and the information made it very difficult to make comparisons, as there were variations between companies and products in terms of costs, service, etc.
In 1998, there were over 1 million insurance agents selling insurance to U.S. consumers. Some insurance agents sold policies from a number of carriers, while others sold policies from one specific company. Agents were paid for sales generated for the insurance company. Agents became a very expensive way for companies to sell their products and, as a result, the costs often exceeded the premiums generated by any given policy in the mid 1990s. The industry was in need of some refining and consolidation. Some insurance companies had already begun eliminating the middleman by selling their products directly to the consumers (USAA and GEICO). Morgan Stanley Dean Witter analysts believed that a shift to an Internet distribution channel would save insurance carriers 10 to 15 percent per policy per year over the current process by reducing selling and administrative costs.
QuickenInsurance – BackgroundMr. Aldrich fully understood the industry and obstacles he was facing and had a plan for the future success of his company. He stated “When my partner and I first contemplated an online insurance business in 1994, the internet was un-chartered territory. When we launched the business in 1995, we had a hard time convincing insurance carriers to join our service. The decision to link our fledgling company with Intuits well-known and well-respected brand dramatically increased our credibility with both suppliers and customers. Today, we have 50 of the largest, name-brand insurance carriers linked to our service.” The decision to sell his company was a wise one. As 2000 approached, the Internet was becoming a popular and attractive distribution channel for simple consumer products, including auto and term life insurance. Auto insurance was projected to be the first and fastest growing online insurance product due to its simplicity and annual renewals. There was a tremendous amount of added value for QuikenInsurance joining Intuit. By summer 2000, Intuits Quiken.com was receiving an average of 30 million visitors per month with over 20 million return visitors. The popularity of Intuit and Quicken.com instantly broadened the market for QuickenInsurance.
Although Mr. Aldrich is moving on to his new role, he still has responsibility in regards to working with QuikenInsurance and the new general manager. He remains indirectly responsible for the overall performance. Through his experience in the industry, he has been able to identify key issues that he feels will be vital for the future success of QuickenInsurance. He now has the responsibility to work with the new general manager and implement strategies for success.
There are a lot of positive things working for QuickenInsurance. It is known that the online insurance industry is rapidly growing, and there is business to capture. They have conducted surveys and know what prospective customers desire from an online insurance carrier. Mr. Aldrich has analyzed the industry and had the opportunity to watch companies such as InsWeb. All of these forces will help QuikenInsurance going forward.
QuickenInsurance – Business ModelQuickenInsurance operated as an independent online insurance agent. In 2000, the company was licensed to sell life insurance in all 50 states and auto insurance in 37 states. The company had established relationships with 50 insurance carriers, 38 for auto and 12 for life. The Company had 13 carriers allowing them to sell policies online. Consumers were directed to QuikenInsurance through vertical portals such as Quicken.com and horizontal