QuickenInsurance: The Race to Click and Close
Background of Steve Aldrich
Steve 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. ...view middle of the document...
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.
Mr. 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 Intuit's 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, Intuit's 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. ...