"The independent agent system has remained strong and vibrant and offers terrific value to consumers, and we remain big supporters," Mr. Lacher said.

However, there has been a precipitous increase in the number of consumers who want to buy direct over the Internet over the past 15 to 20 years, and Travelers feels it needs to be a player in that marketplace.

Direct sales, he said, are an area of great growth opportunity for the company, and it is an area that is not in competition with independent agents because it is a demographic that has no intentions of buying from an independent agent. In fact, the business loss comes from captive agents, he noted.

Having an online direct business is nothing new for Travelers. It has had the capability for more than 10 years, Mr. Lacher noted.

The news should not come as a surprise to Traveler's independent agents. The company has communicated its plans to agents and held a conference call with them, Mr. Lacher explained.

The initial reaction was very negative, he said, but after going through the reasons for the move and its commitment to continued support for independent agents, many agents understood he said.

"It should work out for all of us," he explained, noting that the aim is not to replace agents but expand the business. The prospect is that as a buyer's needs expand, the need for a trusted advisor will grow, and the online business will eventually gravitate to Traveler's independent agents.

He said direct market customers will pay the same price for insurance as they would if they had gone to an agent. He also said any customer who goes to the site will be taken care of, but the company will do nothing to interfere with the independent agent relationship.

While it markets its direct business, Mr. Lacher said the company also plans to continue investing in its independent agent network.

"We are going to drive down that unique position," he said.

Reacting to the news, Dave Evans, senior vice president for the Independent Insurance Agents & Brokers of America, said many companies are experimenting with new avenues to grow their business and Travelers is offering a level playing field for agents and the direct business. "We are okay with that," he said.

"Travelers has said it is still passionate about its independent agents," said Mr. Evans. "They just want to be able to serve that market niche that wants to go direct and it should not be seen as a signal that they are losing confidence in the independent agent channel at all. They are just trying to capture another niche."

In an e-mail response, Diane Fowler, executive director for Professional Insurance Agents of Connecticut, New Hampshire, New Jersey and New York Inc., said: "In challenging times, every business seeks to increase its exposure to customers. We understand Travelers' effort to gain greater market share by experimenting with alternative distribution systems."