SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Freedom Fighter who wrote (9445)1/4/2000 7:39:00 AM
From: Bob Rudd  Read Replies (3) of 78516
 
Wayne - BRK: One other concern may be weighing on this -
Gieco Vs the Net: Presently Gieco is taking share from tradtional insurance players like Allstate by selling direct using advertising and call centers instead of direct sales force, thus have lower selling cost - a big contributor to 10% cost advantage they enjoy. It's not difficult to envision a future, 2 - 5 years from now, when most consumer insurance is sold on the Net with sales intermediated by insuremarket type web sites. Auto insurance policies are pretty standardized commodities that lend themselves to this. While I would expect traditional players to be slow to change, once they see the handwriting on the wall there's going to be a rush to this model to try to get a lead and perhaps prevent commoditization thru web site intermediaries. This could result in Gieco being on the wrong side of commoditization and lower cost competitors unless they move to lead the move to the Net. WEB isn't exactly known for his fondness of new technology and this could be viewed as slowing progress toward direct marketing on the net.
The market is looking at potential downside of net impacts on traditional business models and the above might partially account for some of BRK's recent disfavor.
bob
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News