January 27, 2016 by Canadian Underwriter
Economical Insurance is planning to expand its distribution strategy, becoming a multi-channel organization, with the launch sometime later this year of a separately branded direct channel, says company spokesperson Doug Maybee.
“This new branded direct channel is going to operate completely independently from our broker channel,” Maybee, Economical Insurance’s manager of public and media relations, told Canadian Underwriter. Although unable to go into detail, he says the new channel will deal with personal insurance lines.
The announcement comes as Economical Insurance is telling its employees and broker partners about its upcoming plans to expand the distribution strategy.
“For 144 years, we’ve utilized the broker channel as our sales and distribution mechanism, but we’re now taking that very bold step and becoming a multi-channel organization, with a direct channel that will operate independently and separately from the broker channel,” says Maybee.
Asked how the move could affect brokers, “we’re going to continue to foster our broker channel. It’s thriving and will continue to grow,” he emphasizes. “Our new direct channel will not be competing with our broker channel,” he adds.
“This is within Economical’s best interests. We’re not doing this as a reaction to what other people are doing,” Maybee says. “We will be coming forward with more information as things develop and as the story unfolds,” he adds.