Future of Insurance Agents

by cws611 » Sun Dec 19, 2010 02:54 am
Posts: 13
Joined: 09 May 2009

Hello All,

I wanted to pose the topic around the future of Insurance Agents. I get so concerned about the outlook of insurance agents in the next ten, fifteen, twenty years from now. The way people purchase insurance is changing and the people in my generation and younger tend to buy online.

I'm in my twenties, started my independent agency back in 2009 and absolutely love all that I do. I'm just concerned what will my agency look like in the future with all the advances in technology and companies opting to leave agents out in the cold.

I know there IS and WILL BE value in what we do for our clients; just curious if the insurance companies will remember this too.

Total Comments: 6

Posted: Mon Dec 20, 2010 01:01 am Post Subject:

Of course they won't. You and I are an expensive piece of what they do, and anything that reduces expenses will make them happy. The auto insurance industry has been working at this for years. The life industry (where I spend the vast majority of my time) hasn't made quite as successful a transition--for many reasons.

There will probably always bee a reason for an agent. I know good independent P&C agents who are well respected among their peers and loved by their clients for their ability to walk them through the insurance maze.

I personally tell people that I'm not an agent, but a consultant to assist them make insurance purchases. Maybe in the future we'll work on a fee basis (I hope not) but there will always likely be room for people who can help people make informed decisions, especially when it's an important decision like insurance.

Posted: Mon Dec 20, 2010 07:19 am Post Subject:

I know there IS and WILL BE value in what we do for our clients; just curious if the insurance companies will remember this too.



Yes, we represent tremendous value to our clients and others. But, as an example, courtesy of the 80%-85% loss ratios imposed on insurance companies, together with no preexisting condition declines, and unlimited lifetime benefits, all of the health insurance companies I represent have cut new business commissions/renewal commissions by up to 80% compared to what they were on September 23, 2010.

Only after they have enough track record on expenses and loss ratios in a few years, might they restore some of the lost commissions on new business.

Posted: Thu Jan 20, 2011 05:53 am Post Subject:

no job or industry is safe these days. focus on what you do, do it well, and enjoy it. we're not promised tomorrow. insurance industry isnt going anywhere, although always changing. just have to learn to change with it and find niches. A lot can change in 3-5 years, i cant imagine 15 yrs. many opportunities will come and go, just pay attention and keep your eyes open.

Posted: Thu Jan 20, 2011 06:57 pm Post Subject:

mbyork ...

Nice of you to reply to a spammer. :D

Posted: Thu Jan 20, 2011 07:01 pm Post Subject:

im such a nice guy, lol

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