Economical to launch direct channel

Economical Insurance has told Top Broker it plans to expand its distribution strategy and will launch a direct channel “later this year” for personal lines. Economical spokesman Doug Maybee said the new channel will be “separately branded,” and it’s “going to operate completely independently from our broker channel.”

When asked about other direct launches such as the recent one by Aviva, Maybee rejected the idea that Economical is following a herd. “No, absolutely not — no, no. Our business strategy is what’s in the best interest of Economical, and we’re not doing this as a reaction to what our competitors may be doing.” He said the company is still fostering the growth of its own broker channel.

When asked how the company might navigate possible negative reactions from the broker community, Maybee said he “doesn’t share that sentiment… We are not the first ones to do this…” He said the insurer has done a consultative process with its brokers. “We’re not taking a bombshell approach to this whatsoever. We want to make sure our employees and our brokers are aware of what we’re planning to do…”

This story was originally published by Canadian Insurance Top Broker.