Seattle — Safeco is betting on new business from retail and wholesale discount giant Costco.
Issaquah, Wash.-based
Costco's Web site includes insurance discount information: Costco business members may receive up to a 10% discount on business insurance, including property, liability and business auto coverage, through Safeco or a Safeco subsidiary. The company reports that it also will offer workers’ compensation coverage.
A link on the Costco Web site takes members to a Safeco Web page where the insurance may be purchased.
The move to broaden its distribution channels by chasing Costco customers comes after Safeco announced the $6.2 billion acquisition of Boston-based Liberty Mutual Group. Following the transaction, Liberty Mutual Group will become the fifth-largest U.S. property/casualty insurer based on the companies’ combined 2007 direct written premium of $26.2 billion, and the combined organization will have about 15,000 independent agencies.
In coverage reported on InsuranceNetworking.com, Mark Gorman, principal with Minneapolis-based Mark Gorman & Assoc., told INN, “This type of merger allows for leveraging of a distribution channel, and also size and scope. I can see immediate benefits for both organizations in terms of pairing technology and product innovation with a distribution focus and capability."
Sources: Costco, INN archives
