Don't Look Now, but Wal-Mart Is Coming

Sam's Club has more than 47 million members, who could be ripe targets for workers' comp insurance from Wal-Mart.

The buzz is that Wal-Mart is now selling car insurance (even thought it is actually acting as an agency for other insurance companies.) This made we wonder if Wal-Mart will ever sell workers' compensation insurance. What businesses would Wal-Mart target? It already has a large database of companies -- think Sam's Club. Sam's Club has more than 47 million members and is the U.S.'s eighth largest retailer. Those numbers do not even count the Wal-Mart shoppers. The 47 million are not all business members, but the number of businesses shopping at Sam's must be staggering. So, the market for cheap workers' comp insurance could be big for Wal-Mart. The buying power of the agency Wal-Mart runs would be enormous. The agency that Wal-Mart will use for car insurance has a track record of providing goods and services to Wal-Mart, so it has made it over the first critical hurdle of establishing a vendor relationship with Wal-Mart. That is not an easy task. Agents and brokers should keep their eye on Wal-Mart, as it may soon provide very stiff competition in the world of business insurance -- business liability and owners polices could be another ripe area for Wal-Mart to exploit. Where there is profit, Wal-Mart tends to go.

James Moore

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James Moore

James has more than 25 years of experience in insurance, specializing in workers' compensation. He has consulted on, adjusted, supervised and managed the administration of workers’ compensation claims and underwriting in 45-plus states.

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