The Sky Isn’t Falling, We are Merely Evolving

So much of what you read today is about the impending demise of the independent agent and their long standing system of providing individuals, families and businesses appropriate and effective insurance protection.

Disrupters are entering the marketplace who are leveraging technology to significantly speed up the process and replace many of today’s insurance workers with artificial intelligence. We’re told consumers, especially the younger ones, will be flocking to these new technology based direct providers of protection that offer convenience, speed and low cost.

Industry pundits warn independent agents that failure to aggressively compete with these disrupters will mean the demise of independent agents and their system of operation. They question why independent agents aren’t immediately mobilizing all their resources to meet this challenge. Are they not taking this threat seriously? Are they willing to lose large numbers of their clients to these disruptors? Don’t they understand the end is near?

The answer is many of them understand the threat and realize change is necessary. The problem is the average agency isn’t in a position to stop everything and implement all the necessary changes to meet this perceived challenge. They have clients and prospects to take care of and for many it would require significant resources in both money and people that are not readily available.

For the average agency the answer lies in stepping back and looking at how they currently operate. What small but necessary changes can they make right now to improve how quickly and conveniently they provide protection for clients and prospects?

• Are they maximizing the use of their existing technology?

• Are they gathering and using important information about clients and prospects?

• Are they being successful communicating with clients and attracting prospects?

• How convenient is it for clients/prospects to take advantage of their services?

• Is their staff trained and equipped to provide quality service?

• How satisfied are their current clients with the services they provide?

• Are prospects greeted warmly and given the focused attention they deserve?

• Are they effectively using their website and social media?

• Are they promoting the benefits of working with an independent agent?

Small changes can produce big benefits. Their clients are with them because they feel they care and they’re currently satisfied with the service they provide. Making small but positive changes will only further solidify their relationship and should assist them in getting referrals.

A number of the current issues with the independent agency system are industry problems and require change in the way carriers and current technology function. Individual agencies should push for these changes whenever and wherever possible but it’s’ going to take the industry as a whole to make these changes.

In closing, I just have one thing I would like to address. There are a number of so called industry “experts” who are out beating the drum for significant change now. Many either don’t understand or choose to ignore the realities of the average independent agency in today’s marketplace. This is borne out by the things they say and write. I believe that many of them love to hear themselves speak and have a problem pulling away from the refection in the mirror every morning. They seem to work in clicks where they each promote the ideas and the services of the others in the group.

Here is my request to them. No more Chicken Little – the world isn’t coming to an end, we merely are experiencing the effect of technology on the insurance business. Yes agents need to change to meet these challenges, but there are issues that limit how quickly it can happen.

Stop ignoring reality. Understand and appreciate the issues of the average agency and offer some realistic and viable solutions that will allow them to improve and better compete in the marketplace.

This is not a popularity contest. Save the acting for your personal YouTube posts. Make your messages simple and direct. It should be about providing solutions for change that can help improve the effectiveness of independent agents and the value they bring to protecting the public.

As an organization Big I New York exists because we believe that independent insurance agents serve customers best with trusted advice and the right coverage options to protect what matters most. Because of that we strive every day to assist our members in operating and growing their agencies efficiently and effectively. Anyone else who professes to care about independent agents and the independent agency system should do the same.