This topic is absolutely crucial. In my humble opinion, the industry is simply too easy to enter and remain in. We're dealing with people's lives, futures, families & future generations, and there are too many under-trained and under-educated agents damaging the industry because they're hurting their clients.
The best examples are the newbies who are pushing Equity Indexed Annuities on every senior across the country, whether they are appropriate or not. That fat 9% commission is an incentive to grab every dollar possible, regardless of the client's overall financial picture and needs. Many of these agents have NO business pushing these products without appropriate training.
I won't make any friends with this one, but I'd model the insurance industry after the financial industry (only I would have the regulations actually enforced). Different levels of licensure required depending on the products sold, like finance's series 6, 7, 65, etc. That, right there, would get rid of much of the riff raff. If you don't have the right licensure, you can't go near annuities, for example.
This industry has earned its bad reputation, but it can cure its ills on its own. Higher standards, higher expectations, better self-regulation, higher quality.
That, or the professional politicians and federal bureaucracy will do it for us. Especially those who are in power currently -- these are people who are just ACHING to control as much of the economy as possible.
It's our call.
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