Online insurance launches in Canada

Ontario-based brokerage Cowan Insurance Group has teamed with Internet software developer Open Text Corporation and AOL Canada to introduce the first online, real-time multi-company quotation and buying system in Canada.

The “cowaninsure.com” service, which was launched toward the end of August this year, will initially focus on the Ontario personal lines market through AOL Canada’s subscriber base, says Cowan Insurance president Scot Dalton. Following what Dalton refers to as a “significant capital investment” in launching the online service, the brokerage plans to run a pilot project over coming months focusing on personal lines insurance. Depending on this performance, the company expects to expand the service nationally and broaden its use to include other coverages such as commercial business. Cowaninsure.com was brought online with three carriers, which developments are already afoot to increase this number within the next 12 months, Dalton comments. “Initially, we’re looking at an Ontario rollout and going national within the next 12 months, depending on how many carriers come on board…We expect to open the service to all online users once we’re comfortable with the startup performance.” At the moment the service can only be accessed through AOL Canada’s “personal financial channel”.

AOL Canada is a joint initiative between Internet service provider America Online Inc. and the Royal Bank group, currently involving more than 80 e-commerce vendors in Canada. Dalton points out, based on market research carried out by the company, Cowaninsure.com is currently the only online service in Canada offering buying capability over the Internet as well as enabling for multiple price quotes. “Most services require confirmation through a call center before the transaction is completed. Also, this service offers combined insurance coverage pricing or individual risks, namely auto and home.”

Although Dalton was not willing to discuss target revenues from the service, due to strategic marketing reasons, he does regard the company’s investment in online insurance to be long-term. “The world is moving to e-commerce, and we can’t sit back and wait for someone else to come up with a solution for the property and casualty insurance industry. I certainly believe there is going to be huge potential down the road.”