MetLife Auto & Home has welcomed a direct marketing proposal from General Motors that facilitates auto insurance to new car owners. In an effort to enhance its brand image, General Motors incepted MetLife Auto policy that would cover liability and physical damage coverage and serve new GM customers for models Chevrolet, Buick, GMC or Cadillac. It is presumed the marketing campaign will help the distribution force of independent agency, as well. The proposal is currently extended to Washington and Oregon.
However, several independent insurance agents have raised concerns regarding the marketing gimmick.
Bob Rusbuldt, president and CEO of IIABA (Independent Insurance Agents and Brokers of America), alleges that his group strongly perceives the marketing proposal will elevate several legal issues.
Upon being asked what the legal concerns might be, he responded, “We have elevated regulatory and licensing concerns, in addition to critical consumer issues. MetLife Auto & Home is seriously listening to our issues and reviewing them.”
Nonetheless, MetLife continues to support the GM contract, and company spokesperson, David Hammarström affirmed the news.
He said, “Since the time it was founded, MetLife Auto and Home has been recognized as a company that utilizes multi-channel sales, for selling policies to potential clients, and we remain unswerving to all our sales partners, regarding the agents and employee-benefit sales. Enhanced brand recognition for MetLife Auto & Home is beneficial for our organization and our force of sales people, as further customer awareness of the company and its value proposition will continue to drive sales through all distribution channels.”
Further, he said that MetLife Auto & Home was approached as the exclusive insurance provider for this marketing program.
“Eventually, we decided that this campaign would help us expand our business and propagate brand recognition, and was a financially viable option. We were piqued by this campaign’s likelihood of attaining surplus customers who otherwise may not have known about this company”
Hammarström believes the number of cars sold will measure the success of the program.
He did not deny the proposition of other car manufacturers striking similar deals to attract car buyers. He also said that he was unsure about whether the other car manufacturers would show interest towards this proposition, but also mentioned that they would be welcome to discussions if they were in agreement with this.
