by TLE » Tue Jan 20, 2009 04:48 am
I was wondering if all these company's I see on TV that sell insurance on the internet and do not use an agent and they give a discount if you buy on line,does this hurt sales for some agents, and is it possible this could eliminate the agents job.
Posted: Tue Jan 20, 2009 09:32 am Post Subject:
I doubt that of it would ever eliminate the agents job. Think of yourself TLE, would you like to discuss your situation with an agent or with a machine? even though you prefer buying a policy online it is advised that you discuss the details with an agent before actually buying the plan.
Posted: Tue Jan 20, 2009 12:17 pm Post Subject:
There is no doubt that insurance agents or agencies who fail to explore the idea of selling insurance online will fall behind those who do.
Not too long ago, I was involved in a situation where a company that I already represented was actually prospecting my existing customers. The customer brought me a postcard that said - "Buy online and save $300".
People buy everything online today and insurance is no different.
Posted: Tue Jan 20, 2009 12:41 pm Post Subject:
TLE it IS insurance agents and agencies that own those online sites.
What's sold online is "order taker" type insurance. Such as, term life insurance, auto insurance, Medicare supplements and very expensive guaranteed issue life insurance.
When was the last time you saw a TV commercial for an Irrevocable Life Insurance Trust funded with a Second-to-Die policy?
Or have you ever seen a commercial for a Crossed Purchase Buy-Sell Agreement?
Or a commercial for a 1035 exchange consolidation because you've got 6 old policies from the Nixon administration and need to clean things up?
So no, those TV commercials or online sites don't hurt our business in the least. They promote the insurance industry, give a client an idea of about what they should expect to pay but most people still want the services provided by an agent.
Press 1 for more information, or press # to hear these options again will NEVER replace an agent.
EVER.
Posted: Tue Jan 20, 2009 12:53 pm Post Subject:
May be true that the people with insurance initiative will buy online. but people having lesser information of insu products has to refer the agents. And afterall agents have the skills to turn negative people into positive feedback.
Posted: Wed Jan 21, 2009 03:33 am Post Subject:
You may know what to do on your own if you have normal cough and flu. If you have more serious health problems, you need a physician to prescribe the right medicine.
Insurance agents are still relevant in the market place and they are very much needed to give their customers professional advice.
Posted: Wed Jan 21, 2009 01:37 pm Post Subject:
By going through the online materials you'd have an idea of the policy features. I'm sure, before investing a single penny upon a policy you'd like to know the benefits in greater details. An agent could be the best option to explain to you the pros and cons of all the named benefits.
Posted: Wed Jan 21, 2009 05:31 pm Post Subject:
It just seems like if the insurance company can cut out the agent they will.Does it seem like they are trying when they offer a discount if you buy on line and whith them. can this hurt some agents that sell that type of insurance.
Posted: Thu Jan 22, 2009 03:57 am Post Subject:
If a insurance company contacts its customers directly to offer discount, it certainly hurts the sales agents if the customers are secured by the sales agents.
I don't think insurance companies would like to compete with their own sales agents for the customers who are already in their book. In the long run, it would not benefit the insurance companies if the companies are dependent on sales agents for business.
Posted: Wed Jan 28, 2009 06:16 am Post Subject:
The really crazy thing is that these online companies can not charge any less than an agent. Rates are determined by state DOIs for this reason. I compete directly against these call centers and the quotes they give to prospects are identical dollar for dollar for the same policy from the same company.
The saving money or online discount is just an advertising angle.
Posted: Thu Jan 29, 2009 06:30 pm Post Subject:
If they don't use the agent can they give a discount because they save money not paying the agent so they can lower the agents fee.
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