Future of P&C Insurance Agencies

[161]

So, with the internet becoming more and more popular for purchasing insurance, what do you think the future of brick and mortar insurance agencies looks like? Especially Captive Agencies.

I'd like to think that there will always be a significant number of people who would rather deal with a local agent vs. going online. I have two sons that I would love to see come and work with me, but I just don't know.

Any thoughts?

 

[BTFuzz]

I think agents will be around for awhile. Good aggressive marketing agents that is. I do think the cost of turning a lead or prospect is going up because of competition being so great though.

I think if you carve a niche or niches you have a much greater chance of succeeding in the long term. People still like doing business with people IMO.

 

[Bob Klee]

I agree with BTFuzz!

The Internet cannot add value. It cannot review my coverage & make recommendations. I have to be the expert on what coverages are best if shopping on the Internet.

Can the Internet review my policies & financial situation and then recommend the proper way for me to reduce my risks?

Auto/Home coverage will never be a commodity unless the Agent believes the only thing the consumer cares about is Price. If you only sell on Price & only quote someone the coverage they currently have, then the consumer can replace you with the Internet.

That's my 2 cents.

 

[Tigerhoo]

So, with the internet becoming more and more popular for purchasing insurance, what do you think the future of brick and mortar insurance agencies looks like? Especially Captive Agencies.

I'd like to think that there will always be a significant number of people who would rather deal with a local agent vs. going online. I have two sons that I would love to see come and work with me, but I just don't know.

Any thoughts?

161, I have had similar thoughts for the last five years and am a captive myself. Has me concerned to say the least. I do think you are spot on sadly with captives namely, regardless of the value we bring to the table.

In the not too distant future I think the larger independents will have a chance by diversifying their books with commercial lines, and multiple personal lines markets, but as for our kids being involved in our business under the captive market......

 

[161]

Thanks for the responses.

I've given this a lot of thought and I guess one way to look at it is this - You can do just about any kind of banking you want online, but there are still banks. And lots of them. Why? Because people, young and old, still like to be able to walk into a bank and talk to someone about a problem or have something explained to them. Banking products are not any more complicated than insurance products. In fact, banking products are probably simpler. So, why would agencies go away if banks have not?

I think the number of Captives will probably go down, but if you own one of the better agencies in your market, you will more than likely be around for quite some time.

Progressive still writes over 50% of their business through agencies and ALL they advertise is the direct channel. That says a lot right there.

That being said, I'm still not sure about the prospects of my kids joining me in the business. And I do think it is smart to have a "Plan B". Feel free to add your thoughts. I think this is a good discussion to have amongst other agents and I value your opinion.

 

[Guest]

I dont know about you, but I KNOW I add value to my clients, so I have no worries

 

[b61mack]

161 how are you doing now?. do you write business and commercial, maybe you need to bring in your sons, now to breathe new life into the agency. you at least need a vacation, to get your insurance batteries recharged... the jersey shore is nice this time of year. and take tally-hoo with you

 

[161]

161 how are you doing now?. do you write business and commercial, maybe you need to bring in your sons, now to breathe new life into the agency. you at least need a vacation, to get your insurance batteries recharged... the jersey shore is nice this time of year. and take tally-hoo with you

I'm actually doing very well now. I have a $11M agency and rank in the top .1% countrywide with my carrier. It's been an excellent ride so far and I want it to stay that way. As far as bringing the kids aboard, it would be tough to do. They are 5 and 9. : )

And there is really no need for a vacation, my operation is very well run and I rarely have to go in to the office. I can pretty much do what I want, when I want. I haven't written an application in years, much less answered the phone.

I appreciate your concern, but my batteries do not need to be recharged. I am actually very happy with my business. We are growing and very profitable. I have an excellent staff that handles everything for me. I'm simply thinking about the future and trying to make the best decisions possible for my family.

 

[BTFuzz]

I'm actually doing very well now. I have a $11M agency and rank in the top .1% countrywide with my carrier. It's been an excellent ride so far and I want it to stay that way. As far as bringing the kids aboard, it would be tough to do. They are 5 and 9. : )

And there is really no need for a vacation, my operation is very well run and I rarely have to go in to the office. I can pretty much do what I want, when I want. I haven't written an application in years, much less answered the phone.

I appreciate your concern, but my batteries do not need to be recharged. I am actually very happy with my business. We are growing and very profitable. I have an excellent staff that handles everything for me. I'm simply thinking about the future and trying to make the best decisions possible for my family.

Sounds like you have exactly what we all aspire to have...good for you!!

 

[b61mack]

161, good to hear that. i remember when my kids were 5 and 9.... it seems like yesterday. they are now in their 30's.. so enjoy them now!!!