After the real estate earthquake last week . Is insurance next ?

[marindependent]

I’m sure thoughts ran thru agents minds seeing the big real estate commission potential collapse last week . Insurance commissions are really a monopoly with no rebating allowed . The consumer can’t negotiate the commissions . Will insurance be the next shoe to drop ?

Here is the thing DonP - Consumers can already purchase many forms of insurance without paying a commission to an agent. Many insurers offer direct to consumer platforms. And guess what - based on all of the questions that we get on this forum from Geico Consumers - my estimate is that...Its Not Working too Well.

As has been stated consumers to not directly pay agents commissions, unless there is a broker fee, typically.

And insuratech companies thought this too - they went out and told folks just download and app and you can run your own insurance portfolio and save.... no agent needed. This madness - keeps my phone ringing 24 hours a days because they dont understand what Personal Injury coverage is on a homeowners policy. Its the best marketing platform I have ever found. Many of those tech companies [Lemonade, Hippo] have retreated and figured out that having a middle man to set things up solves much of their problems. At the end of the day - there has still got to be a person to make sense of it all. The chat bots just dont work for many situations.

So yes, someday - Commissions for agents may go away. But from the complexities that I see on a daily basis - I believe technology will make me better and more eficient - not put me out of work.

Best of Luck

 

[scagnt83]

If homes only cost $5k per year, then it would be an apples to apples comparison.

If banks marketed 5% loans to finance insurance premiums... subsidized by free money from the fed.... then insurance would see the same booming growth real estate has.

 

[DonP]

Here is the thing DonP - Consumers can already purchase many forms of insurance without paying a commission to an agent. Many insurers offer direct to consumer platforms. And guess what - based on all of the questions that we get on this forum from Geico Consumers - my estimate is that...Its Not Working too Well.

As has been stated consumers to not directly pay agents commissions, unless there is a broker fee, typically.

And insuratech companies thought this too - they went out and told folks just download and app and you can run your own insurance portfolio and save.... no agent needed. This madness - keeps my phone ringing 24 hours a days because they dont understand what Personal Injury coverage is on a homeowners policy. Its the best marketing platform I have ever found. Many of those tech companies [Lemonade, Hippo] have retreated and figured out that having a middle man to set things up solves much of their problems. At the end of the day - there has still got to be a person to make sense of it all. The chat bots just dont work for many situations.

So yes, someday - Commissions for agents may go away. But from the complexities that I see on a daily basis - I believe technology will make me better and more eficient - not put me out of work.

Best of Luck

I’m not saying commissions or agents going away . I’m saying there could be reduced commissions as negotiations on comp allowed

 

[marindependent]

could be reduced commissions

In P&C I believe that has more or less already happened.

negotiations on comp allowed

Maybe - Cant imagine how the CA DOI or NY would allow that.

In the end if Commissions are forced down, Brokerage Fees might go up.