Lot's of discussion in different forums about how to deal with the market place changes. As one who has survived multiple challenges including watching business models collapse, carriers leave the market, companies going under, etc I have a somewhat unique perspective.
You don't have to agree with my comments. This is not a debate about who should do what. It is more of a history lesson from someone who has survived and is not currently doing anything remotely related to my first position in the insurance industry.
Over the last 45+ years I have been up close and personal with the following.
- Family owned agency restructures after brother-in-law loses his job. Agency hires BIL who has NO insurance experience, fires non-family member with insurance experience.
- Carrier closes satellite office in consolidation move.
- Carrier fires manager and everyone he hired (with exception of clerical workers)
- Carrier shifts direction and abandons market segment.
- Company (privately owned) sold to publicly owned company then new owner terminates over half the sales staff
- Company fails audit, loses reinsurance pen, abruptly closes without warning
- Specialized market collapses following years of accelerated growth created by loose underwriting and low rates
- Market segment collapses due to government imposed rules. Over 90% of carriers abandon that market within 2 years. Agents trying to hang on see their commissions dramatically cut and in many cases reduced to $0
Agents currently selling F2F are debating their future. Some will adapt to the new environment. Many (most?) will not survive.
Agents whose market consists of low income policyholders will most likely see new sales fall off and policy lapses as jobs for unskilled, low income workers collapses.
Embracing technology and replacing F2F with video telesales will work if your client base has access to the technology and understands how to make it work on their end.
Cold calling, D2D canvassing, telemarketing, direct mail, internet marketing is rapidly changing. What agents did in the past to find prospective clients may not work as well going forward.
Agents can sit on their hands and insist nothing has changed may find themselves with reduced income streams. Those with residual income can ride out the storm and see what develops on the other end. The ones who rely on constant new sales will have to make dramatic changes if they are to survive.
During my time in this industry I have had to retool and change my business model at least a half dozen times. Hopefully the last overhaul (10 years ago) will be good enough to sustain me for a long time to come. But if not, it is up to me to find a new business model or hang up my spurs and ride off into the sunset.
Quite a few agents are currently staring at a blank canvas. Some realize it, others do not. If you want to stay in the game you will need to find something that works or else you become irrelevant.
You don't have to agree with my comments. This is not a debate about who should do what. It is more of a history lesson from someone who has survived and is not currently doing anything remotely related to my first position in the insurance industry.
Over the last 45+ years I have been up close and personal with the following.
- Family owned agency restructures after brother-in-law loses his job. Agency hires BIL who has NO insurance experience, fires non-family member with insurance experience.
- Carrier closes satellite office in consolidation move.
- Carrier fires manager and everyone he hired (with exception of clerical workers)
- Carrier shifts direction and abandons market segment.
- Company (privately owned) sold to publicly owned company then new owner terminates over half the sales staff
- Company fails audit, loses reinsurance pen, abruptly closes without warning
- Specialized market collapses following years of accelerated growth created by loose underwriting and low rates
- Market segment collapses due to government imposed rules. Over 90% of carriers abandon that market within 2 years. Agents trying to hang on see their commissions dramatically cut and in many cases reduced to $0
Agents currently selling F2F are debating their future. Some will adapt to the new environment. Many (most?) will not survive.
Agents whose market consists of low income policyholders will most likely see new sales fall off and policy lapses as jobs for unskilled, low income workers collapses.
Embracing technology and replacing F2F with video telesales will work if your client base has access to the technology and understands how to make it work on their end.
Cold calling, D2D canvassing, telemarketing, direct mail, internet marketing is rapidly changing. What agents did in the past to find prospective clients may not work as well going forward.
Agents can sit on their hands and insist nothing has changed may find themselves with reduced income streams. Those with residual income can ride out the storm and see what develops on the other end. The ones who rely on constant new sales will have to make dramatic changes if they are to survive.
During my time in this industry I have had to retool and change my business model at least a half dozen times. Hopefully the last overhaul (10 years ago) will be good enough to sustain me for a long time to come. But if not, it is up to me to find a new business model or hang up my spurs and ride off into the sunset.
Quite a few agents are currently staring at a blank canvas. Some realize it, others do not. If you want to stay in the game you will need to find something that works or else you become irrelevant.
