Insurance Companies Going Green

So, this blog isn’t really about insurance companies going green in their business practice, but rather what they are offering their clients for those who choose to go green. I feel that if companies gave people incentives to go green, we could actually all participate in making our planet healthier. We’re creatures of habit, and many of us will not change our ways. For example, majority of us will rarely ever change our main banking institution because it is a hassle and hard to break a habit. It goes for the same when trying to educate the public on going green. If companies gave incentives to go green, perhaps people will try and break this perpetual habit and practice being green.

I was reading an article on Insurance-Canada.ca in their marketing section about Co-operators introducing their green insurance options.

Enviroguard will be the first to offer additional 10% of coverage, up to $50,000 to restore property with environmentally friendly alternatives following a claim. They will also offer Co-Operator’s clients in Alberta and Ontario, who own hybrid electric vehicles a 5% discount on their auto insurance, and by the end of 2009, we should expect them to roll out this program to other provinces in Canada.

It is finally nice to see companies offering benefits for consumers who are willing to practice green. As I mentioned before with green products, they are often more expensive and consumers are generally unwilling to pay for products that are environmentally friendly if it cost them more money. Hopefully this initiative Co-operators has taken to offer clients a discount, if they choose to go green, will encourage consumers and other insurance companies to go green too and offer similar incentives to do so.

There are couple things I think might become a hindrance for Co-operators’ marketing strategy. One, not many hybrid cars are sold in Canada. I think if they expand their program to diesel cars, they might get more followers. Second, Co-operators get business from their agents not brokers. Sure the company is big, but if you add all the other insurance companies who get clients through a broker, those numbers are far larger. Which points to the marketing problem: this program is easily replicated (which in my opinion is a good thing if you want to promote green living). Another insurance company, who gets clients through a broker, can get the credit for being “first” in the industry to offer ‘Green Insurance’.

We’ll see what happens, but I think this is a great first step coming from an insurance company to promote green living to consumers.