Opinions on the Future of Independent Insurance Agencies

[somarco]

Will the buying habits of gen z be different when they start aging into Medicare? Probably. But most of this forum will be dead by then.

Define "most" . . .

The main issue direct carriers face is that they haven't found a way to be cheaper than the captives & independent carriers.the direct spend as much or more on TV & other marketing & technology than the commission costs to the agent. So, if am agent or agency is good, why not have one for the same cost for the advice & as an advocate when needed.

THIS ^^^^

My product line has the same rate and benefits consumers can see (almost) anywhere. Online, carrier site, other agents, volunteer organizations . . .

What makes me different from all the rest is the INFORMATION and advice they won't get anywhere else . . . especially from home offices and national marketing agencies.

 

[Nautilus5711]

There are certain situations and people that are perfectly happy buying a complex product that can protect their finances and future from a cartoon character on tv or commercials with people getting pies thrown in their face.

I like the way you worded that, that's a good point. I do not personally have a complex insurance situation, but there are many who do and need that guidance. You can't just point and click something like that.

 

[Nautilus5711]

To this day, worthless "financial advisors" manage to scam people into paying 1-2 percent a year for a underperforming mutual fund. We tend to forget what it feels like to not know something important.

I work in this industry now and on a daily basis I am amazed how little financial "advisors" actually know, how incompetent they are at running a business, and their consistent lack of effort for themselves and their clients. That's not me just being blindly pessimistic because I'm burned out or nihilistic about my job, it's real and scary. It's a situation of people who don't need advisors being suckered in by people who shouldn't be advisors.

 

[Nautilus5711]

The main issue direct carriers face is that they haven't found a way to be cheaper than the captives & independent carriers.the direct spend as much or more on TV & other marketing & technology than the commission costs to the agent. So, if am agent or agency is good, why not have one for the same cost for the advice & as an advocate when needed.

This is what I genuinely wondered, which marketing approach is more effective? The large budget corp who can "expertly" market through mass media or the small guy who can make up for his small budget with salesmanship and customer service. It seems like IAs have some things working for them and some against them.

The small guy has an existing network of clients and referrals to which they can bring in business to the carrier of their choice, this is a very inexpensive way to bring in business the direct-to-consumer carriers cannot match. That coupled with their own sales ability and the trust built into their clients. You cannot successfully substitute a hungry salesman working for themselves with a website or a mass hire call center.

One the downside, of the agents I've spoken to, most of which do not understand marketing or how to implement it, it's hard to believe they would be able to market as efficiently or effectively as a large company with a massive budget. But it seems like so few IAs actually spend much money on advertising anyway.

 

[Allen Trent]

This is what I genuinely wondered, which marketing approach is more effective? The large budget corp who can "expertly" market through mass media or the small guy who can make up for his small budget with salesmanship and customer service. It seems like IAs have some things working for them and some against them.

The small guy has an existing network of clients and referrals to which they can bring in business to the carrier of their choice, this is a very inexpensive way to bring in business the direct-to-consumer carriers cannot match. That coupled with their own sales ability and the trust built into their clients. You cannot successfully substitute a hungry salesman working for themselves with a website or a mass hire call center.

One the downside, of the agents I've spoken to, most of which do not understand marketing or how to implement it, it's hard to believe they would be able to market as efficiently or effectively as a large company with a massive budget. But it seems like so few IAs actually spend much money on advertising anyway.

giving exceptional real service (not just advertised fake quality service) along with word of mouth, asking for referrals, selecting neighborhoods to drip mail property quotes or even pay local kids to quasi door knock & drop off sample quotes may sound ridiculous, but it will & does work for those that work it

 

[Markthebroker]

giving exceptional real service (not just advertised fake quality service) along with word of mouth, asking for referrals

Bingo. I just called an auto body shop that was referred to me. Throughout the conversation, it turns out in addition to the friend that referred me, his best friend from high school was telling him about what a good job I did for him as well.

You can't buy that kind of marketing. You have to create it.

 

[Allen Trent]

Bingo. I just called an auto body shop that was referred to me. Throughout the conversation, it turns out in addition to the friend that referred me, his best friend from high school was telling him about what a good job I did for him as well.

You can't buy that kind of marketing. You have to create it.

this is why I never could relate to fellow agents that had empty calendars & were doing a lot of expensive print/tv/radio/billboards thinking it would lead to phones ringing off the hook. Favorite parts of my career were clients or non-clients I helped saying:

No one has ever.....
Thank you for fixing this for us....
you were the only one to follow through on what they promised.
Do you have a minute to go next door to talk to my mom or call my son so you have fix their stuff too
you made the complicated simple.

I would then say, based on you saying X, Y & Z above, who else do you know, work with, go to church with that you want me to help next. Most agents spend 70% of their time trying to find new clients & they end up with some bad clients. I would rather spend 90% of my time helping great people like you & 10% or trying to meet new people.

This is old school stuff, but with proper updating & use of social media, centers of influence, etc it can be utilized today