Today's Viewpoint: A MarshBerry Publication

Analyzing Critical Direct To Consumer Insurance Trends, Companies, & B2C Insurance Industry Changes

Over the past decade, Carriers have expanded their direct-to-consumer platforms through technology investments, Insurtech acquisitions, and other mergers & acquisitions (M&A) to improve profitability and diversify their distribution. Learn more about the evolution and trends of Insurtech and direct-to-consumer carriers below.

Carriers have expanded their direct-to-consumer platforms through technology investments and mergers & acquisitions (M&A) to improve profitability and diversify their distribution over the past decade. These tech-enabled platforms are empowering insurance carriers to reach insureds directly, across multiple channels, allowing them to handle higher volume by automating parts of the insurance buying process. Increasing adoption and continued improvements of technology solutions are expected to accelerate this trend.

The Evolution of Insurance Distributors: Direct-to Consumer-Insurance Carriers

Over the last 10 years, the Compound Annual Growth Rate (CAGR) of direct-to-consumer personal lines Direct Written Premiums (DPW) at carriers Progressive Direct1 and Geico were 10%, while the overall personal lines market grew at a CAGR of 4%. This demonstrates a shift in the mix with the direct channel increasing as an overall percentage of total personal lines premiums. In 2021, Progressive Direct and GEICO accounted for 14% of the total personal lines market up from 9% in 2011.

For Progressive2, the focus on their direct-to-consumer strategy also seemed to have had a positive impact on their enterprise value. Between 12/31/2011 and 5/11/2022, Progressive’s share price increased from $13.35 to $108.27 representing a CAGR of 22.4%, outperforming the S&P that grew at a CAGR of 11.2% over the same period.

Trends Related to Insurance Carriers With Direct-to-Consumer Plans

Below are other more recent developments that the trend is likely going to accelerate from here:

February 2022 – Trōv acquired by The Travelers Companies, Inc. (Travelers)

  • Travelers, one of the largest U.S. Property & Casualty insurers, acquired Trōv’s technology platform.  
  • Trōv was founded in 2012 and raised $100 million in funding3.
  • Trov’s embedded technology systems will be positioned within Traveler’s personal lines segment.
  • The platform acquisition enables Travelers to diversify its acquisition channels through Trōv’s embedded insurance solutions and improve existing service capabilities by adopting a more customer-centric model.

February 2021 – Chubb Limited (Chubb) Launches Blink

  • Launched as the “company’s first-ever endorsed brand of insurance for millennials,” Blink offers cyber insurance with various other coverages such as Renters, Life, Travel and Pets, among others in the process of being added to the platform.

December 2019 – Allstate Announces Transformative Growth Plan

  • Allstate announced a multi-year growth plan with the goal of accelerating growth in its personal property-liability business. As part of this plan, Allstate is expanding customer access, improving customer value propositions, and increasing investment in growth and technology.

As carriers see continued success with their personal lines’ direct-to-consumer strategies, this trend is expected to gain momentum in the small commercial insurance market as well. In fact, there are already early signs of it:

  • Berkshire Hathaway introduced BiBERK.
  • Progressive expanded product capabilities through Progressive Commercial.
  • Hiscox Insurance’s primary U.S. Commercial distribution strategy is selling direct to the insured.

Emerging B2B Insurance Trends in the Small Commercial Insurance Market

The next five years are expected to bring significant changes to the insurance industry. As an owner of an insurance broker, now is the time to double down and invest in your business to remain competitive in an increasingly dynamic marketplace. If you have questions about Today’s ViewPoint, or would like to learn more about the implications of InsurTech in the insurance industry, email or call Tobias Milchereit, Vice President, at 212.972.4883, or email or call Brian Refici, Vice President, at 440.769.0321.

1Represents Progressive’s Direct-to-Consumer Platform.

2Excludes Geico as results are consolidated at Berkshire Hathaway (NYSE: BRK.A)


MarshBerry is excited to announce it advised more than 95 companies and completed 130 M&A transactions in 2021, closing another record year for the firm. MarshBerry continues to remain the number one sell side advisor for the 23rd year in a row and retains the top spot in the industry for total number of clients advised.

Contact Tobias Milchereit
If you have questions about Today's ViewPoint, or would like to learn more about how MarshBerry can help your firm determine its path forward, please email or call Tobias Milchereit, Vice President, at 212.972.4883.

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