When Will Agents Be Represented Fairly as “Good Guys?”

When Will Agents Be Represented Fairly as “Good Guys?”

 Perhaps it’s the time of year, but over the last month or so, I’ve been particularly sensitive to the constant image challenge agents face as scapegoats and fall guys. Agents take false and undeserved hits from all directions all the time: primarily from ubiquitous direct-writer ads, but also in insensitive jokes and comparisons made by trial lawyers, media and the general public alike—and during the election time of October and November, I find it particularly ironic when agents are targeted.

The most blatant instance I saw this month was in a political flier sent to residents in my neighboring county of Suffolk, in which the candidate attacked his opponent in the race because he was “an insurance salesman.” The flier went on to suggest that agents “were nowhere to be found when Superstorm Sandy hit.” I know several of my fellow agents, their staff and families were as outraged by this as I was and I was proud to be part of PIANY, when President Alan Plafker, CPIA, took issue with the flier and sent letters to the editors in Suffolk County correcting the cheap shots that were taken. Plafker pulled no punches, writing:

“While out-of-town FEMA representatives and adjusters came and went, professional, independent insurance agents were there all along. In fact, professional agents played a critical role in helping our fellow residents file claims, get back on their feet and return to as much normalcy as possible—as quickly as possible. They were among the first responders during the storm, putting our customers’ needs ahead of our own businesses and families … and they are still there working on their customers’ behalf. It’s offensive and unethical to capitalize on the pain our area has suffered from Hurricane Sandy.

Further, this campaign piece made the outrageous inference that because Mr. Musumeci’s rival sells insurance, he is untrustworthy. To the contrary, the characteristics that make professional, independent agents successful are exactly the ones we should seek in our representatives.”

Plafker made a great point: Professional, independent agents do have characteristics that make us exactly the opposite of the stereotypes we are constantly fighting. We are honest, trustworthy and truly concerned for our clients. And, the intense competition and regulation under which our field operates forces us to be efficient and productive.

That brings me to another instance: Watching politics during the week of Halloween was frustrating I’m sure, for everyone in our country, regardless of where they stand on the political spectrum. After watching politicians who had us in “shutdown” for nearly three weeks, I myself witnessed at least three major-league apologies on TV about the problems that have plagued HealthCare.gov, the website set up to administer the federal health exchange of the Patient Protection and Affordable Care Act. Health and Human Services Secretary Kathleen Sebelius was grilled by Congress and apologized there and during media interviews. I even saw Joe Biden and the President voice their regret and dismay over how it’s gone.

During congressional hearings over the fiasco, Marilyn Tavenner, administrator for The Centers for Medicare & Medicaid Services, which oversaw the website project, told the House Ways and Means Committee, “We know that consumers are eager to purchase this coverage, and to the millions of Americans who’ve attempted to use HealthCare.gov to shop and enroll in health care coverage, I want to apologize to you that the website has not worked as well as it should.”

The degree to which individuals feel frustration over the website no doubt is higher for states which, unlike New York and others that set up state-run exchanges, opted to deal with the federal program directly, but I know everyone is fed up. I am particularly tired of listening to how everyone was going to save extensively by eliminating the agent or reducing commission, to the point that agents have no reason to participate. I can remember a time when 20 percent of my business always came from the life and health business. But, times changed. For some time we simply didn’t have markets to sell health coverage. But, now we do—the exchange: Mr. President, Ms. Sebelis, your solution stands in front of you—the independent agents who have provided services for clients without issue for all these years can sign them into the exchanges.

And, as PIA said in a release it issued this month, “Consumers should be aware of an option they may not know they have: Consulting their local, professional independent insurance agent or broker for help in enrolling … Unlike the short-timed navigators,” PIA said, “professional insurance agents are able to offer a much higher level of assistance and consumers don’t pay for this service.”

I applaud PIA, which also pointed out that, while in most states navigators are not required to be licensed or to comply with state-mandated CE, nor maintain professional liability coverage, professional agents do, and they must comply with strict and complicated consumer protection laws and regulations. “Choosing a health insurance plan is a serious matter,” PIA National President John G. Lee said in the release. “It is a complex process that cannot be compared to purchasing a book from a website. Insurance is not a commodity. The implications of making a poor choice due to inadequate knowledge include paying too much or getting inadequate coverage for yourself or your family.” I can recall when my daughter was born. The hospital bill from Marcy’s birth was $250 for the entire pregnancy, labor and delivery. My, how the cost of health insurance has changed! Unlike the streamlined efficiency with which professional agents have become accustomed to running their businesses, the cost of unnecessary tests and procedures, waste in our system and other inefficiencies have increased health care costs a thousand times over. I recently had a simple procedure for which the cost of just the pre-operative tests exceeded $1,200! Yet agents are facing an image problem? There’s something wrong here.

I’m not sure why agents are so often the butt of jokes, particularly with the standards to which we are held, even by those who often are the ones taking the cheap shots. I’m glad this November election season is over, though I doubt the shots will stop coming … next year is the big election year, with the race for governor and state and federal representatives.