The Future of Insurance Agents?

[houcoogster]

Frank uses a telegraph.

I have heard that he runs appointments on horseback.
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Ah, the good old days. My mentor, John Hancock and I powdering our wigs before we went cold knocking.

Good one Winoblues! Too funny, now every time I see that Hancock commercial I'm going to picture this.

 

[DHK]

"As technology increases, there has been an erosion in relationships. I fully believe that we will see more relationships and less computers in the field of insurance." - John F. Savage, CLU

 

[HarryRenard]

Same old, same old everything from the internet when gore invented it to callerID, to rising gas prices to 151, to sitonmyfacebook.com were going to be "The Death" of insurance. As I said Same old Same old nay sayers have been saying this for 50years and the industry is thriving, are there changes yes but we're not loosing our jobs.

 

[AndreaSti]

Your friends will get smarter as they get older!

It's a fact that more and mor people are turning to the net to research insurance but not always to purchase. Most people want someones advice and to be able to talk to the same person or same people. People are so fed up with press 1 for English, press 1 for billing, press 1 for recent payments...5 minutes later while getting transferred to a live person they get disconnected. I have people tell me all of the time how refreshing it is to get a live person on the phone. Take a look Geico is opening offices with agents now in more locations. There are a certain percentage of people who will buy direct and a greater percentage will prefer to use a licensed local agent. I think agents will be around...no matter how much technology changes the buying process...if the government stays out of it! I always find it amusing when someone who purchased a progressive direct policy has a claim and they come in to our office to figure out why they didn't have the coverage? I tell them I am sorry but I am unable to access their files however I will be happy to look over their policies. They don't have a clue what they bought. I took my progressive sign down a few years ago by the way. I didnt like that DRIVE thing...

I heard Progressive rates are cheaper for the same coverage if the client buys direct (as opposed to going through an agent). Why is that legal? It just sets people up to buy something they don't understand.

 

[GreenSky]

I heard Progressive rates are cheaper for the same coverage if the client buys direct (as opposed to going through an agent). Why is that legal? It just sets people up to buy something they don't understand.

I was originally with Progress direct for my motorcycle insurance. Since the price was the same as going through a broker, I gave an AOR letter.

Fast forward to a few months ago. I went online, got a quote from them directly, cancelled my existing policy and saved about 50%.

So apparently it's legal. Now why would anyone sell for a company that does that to agents?

Rick

 

[Full Throttle]

If you are valued by the client (service, ideas, knowledge, and/or relationship), then you will have a place in the system. As long as the free market is at work (ie probably not the case going forward in health sales).

 

[Insurance-Guy]

I heard Progressive rates are cheaper for the same coverage if the client buys direct (as opposed to going through an agent). Why is that legal? It just sets people up to buy something they don't understand.

According to my TSM the rates will be the same going forward with Progressive or Progressive Direct? Could be lip service. What Progressive does or maybe I should say did again according to our TSM is give a person a discount for buying online...but then the person got charged that back at renewal.

So apparently it's legal. Now why would anyone sell for a company that does that to agents?

Rick

That is why the sign is down. You still kind of need Progressive for some things....

 

[LuckyFace]

I would break it into Insurance salesmen v Insurance Agents.

The salesmen will need to compete with the web and such.
The Agent will as well, but to a lesser degree. An agent brings value added. An agent builds a book and works that book. A client ask for his agent by his first name. The Agent knows the client and his coverage. An internet customer calls an 800 # and gets "Hello, This is Peggy" 20 somethings may be cool with this. 60 somethings are not.]

It's a nice explanation, I also think that Insurance Agents have more prospectives then Insurance Salesmen

 

[dyadvisor]

Unfortunately more internet searchers use the term insurance salesman than insurance agent.

Back to the future of agents. Right now there are say 1,500,000 life and health agents. Someone smarter than me with a calculator, can tell you the right figure, which is about 3.1 agents per every 1,000 people.

My opinion? 700,000 rookie agents (under 4 years) on Monday were let go. Then this was followed by a 4 year hiring freeze. The image and usefulness of needing an agent would greatly improve.

There is a reason why this will not happen soon. That is because for 50 years a career agency wants an agent to fail... but that is a different story for another time.

 

[BladeRunner]

I just have one question!

From what you guys know, what is the future of insurance agents?

As the new generation uses on-line services much more than the current generation.

I have a few friends in their 20s that never used an insurance agent, they just signed up on-line

What do you guys see will happen in 15-20 years when more and more people use on-line services.

Will insurance agents slowly phase out?

Thoughts?

Hey everyone,

I stumbled upon this thread and even though it's an old topic, I thought I would add my thoughts on this subject.

You have to understand that purchasing styles are unique among age groups.

People in their 20's buy auto insurance online mostly because they're looking for the lowest price with no regard to coverage. Any insurance agent or company can quote you a low price, but that doesn't mean you're properly covered, or properly managing your risk.

Ask people in their 20's what bodily injury and property damage limits they carry on their auto policy and I bet most, if not all, will will say: "huh?".

They don't know because online services can't compare to the quality of a real, human agent. Online services can't guide a buyer toward the proper policy. Online auto insurance sales focus on price.

Let's say you're 23 years old and have no assets -- for example, you own outright a late model car, rent an apartment and have no savings. You have nothing to loose if you're sued for an at-fault accident (except for the fact a judgment against you could garner your future wages -- another reason for young people to carry high limits).

With that being said, maybe your 20 year old friends could get by with a cheap, inexpensive policy with state minimum requirements. But as you get older and acquire more assets -- you have a house, a new car, maybe a family and kids, you will find that your purchasing behavior changes.

You will now value the professional advice of an expert in their chosen field. Quality over price will most likely be a major factor in your purchasing decisions. For example, in your 20's you may buy a few stocks online, but as you mature you may have an investment broker who is your expert on your retirement and financial issues.

In your 20's you may search the internet and buy a home from an online advertisement, but when you buy your next home or investment property you most likely will find a Realtor you respect who will guide and direct you around all the pitfalls of investing and home buying.

You will also realize that an insurance agent can guide you on the proper policies that fit your needs for your life status. And it's not so much about the proper policy as it is the proper coverage options. Then there is life insurance which can be very complicated best left to an expert to explain to a customer.

You can't get this type of one-on-one, consultative interaction and help from an online service. The online purchasing fits a narrow segment of the market for those who are price shoppers. While it is true you can have a blog, or long, long list of text for people to read and educate themselves before they buy, but most people would rather skip that and ask an expert to help them choose the right policy and coverage for them.

I don't ever see the human agent going away. If some insurance companies go strictly online and do away with agents, it will just provide more business for the companies who still have agents and for the mature buyers (post 20-somethings) who need and respect their knowledge.

Once you get a large book of business and your customers experience and understand this relationship, they are more likely to stay as an agent-client and not migrate to the cold, murky waters of solitary, online insurance buying.

Where I see the future of technology affecting agents is interactivity. With the advent of computer cameras and video conferencing on cell phones, plus email, and tablet computers, etc. I see customers interfacing with their agent in a more electronic fashion than in a brick-and-mortar office setting. I think this is great because I see the agent being a virtual agent, being able to expand their business and touch lives beyond their four walls.

Hope this helps

BladeRunner