Google to Shut Down Online Insurance Site (1)

Increased price transparency and ease of shopping both by consumers has negative implications for auto insurance profitability over time as the market becomes more efficient. As this trend plays out, smaller companies that do not have a particular niche or ample scale will find it increasingly difficult to compete with the scale companies, in our view. This hiccup in the road is a net positive for auto insurers as it may delay the further commoditization of the product – potentially for a number of years. We cannot rule out another disruptive player or technology in the near future.