Seasoned Pro's.....Please read!

[TonyC]

LOL...thanks James!

I'm not "chicken little"...just was wanting some feed-back from old pros who been in the game long enough to see a recession....

James...sounds like you're not gonna be affected...good for you!

Yea sure there is a slowdown and even a depression coming. Much like the housing market, people predicted it for some twenty years and lo and behold their predictions came true, well to a degree. Would you like to put a time frame on the slowdown or are you saying it may come in the next twenty or so years?

 

[TonyC]

Thanks Dan,

Actually, if your referring to the current downturn, I'm seeing a strange thing....

Mortgage brokers who made a mint over the last few years are now turning to the steady recurring revenue of P&C insurance. As such, there are few realtors / mortgage brokers, and more insurance agents around. Not a lot, but it does dilute the pool a bit.

I don't do enough health to be knowledgable on how an economy change will really impact that market. On the P&C side, I'm having people drop some coverages to keep the bill a bit more affordable, upping deductibles, etc. Nothing major.

People who suddenly find themselves unemployed tend to take a bit more time to shop, and shop more price than coverage. It can be a bit tougher to compete for new business, but overall, it's a minor change in the overall market.

Core insurance (health, auto, home) is pretty recession proof. It is not depression proof. Fortunately, we don't seem to be heading that way.

Dan

 

[James]

LOL...thanks James!

I'm not "chicken little"...just was wanting some feed-back from old pros who been in the game long enough to see a recession....

James...sounds like you're not gonna be affected...good for you!

As the old saying goes, "Insurance is Recession/Depression Proof". As in the Great Depression, people were banging down the doors of banks to get their money out, yet they were breaking down the doors to get their money in Insurance Companies!

 

[tkirk97]

Guys, don't be to quick to jump on the "recession/depression" bandwagon, clearly you didn't listen to the Fed Minutes on Tuesday, the Fed speak in no way indicated that, yes there is a looming credit crunch problem in the mortgage and housing market but that doesn't mean recession, i'm not saying it won't or can't happen but to use the term on the "horizon" loosely is a little misleading.

Back to the subject at hand. I do not believe that the insurance business would be to adversley affected by a downtun in the economy. People always need certain types of insurance and will continue to buy those policies. I could envision people buying more term ins. vs. perm. But that is really the only affect i can see.

 

[TonyC]

Bump....

 

[TonyC]

Bump...

 

[STIBROKER]

 

[Jerry Tibbs]

Apparently some posters are "scoffing" at the prospect of how the impending economic slow-down will affect their business. I would say that they are living in "their own universe."

We will see who's "scoffing" this time...next year.

In case some of you missed the last Fed Meeting....the chairman lowered the discount rate...and will continue to do so based on all economic indicators.

Yes....we are heading into a slowdown....and...depending on where you stand in the biz, you will come out a little daunted....or you will struggle and fail. Its that simple. You won't know until you try.

Generally speaking....If you have a book of business that is consistent and from stable source, you should be ok.

If you are just starting out...it maybe rough.

However, make no mistake....all of us in the biz will be affected.

PC: Usually more stable...as people must have auto, wind and fire. But certain forms of PC tied in the economy will suffer too.

Health and Life: These policies are more of a luxury item for most folks...especially the poor. If you have to choose between paying the rent or making a life policy payment...which do you pay?

JT

 

[CHUMPS FROM OXFORD]

Somewhat related...I have drastically reduced my Latin American holdings in my 401K. I rode the wave the last few years to some unbelievable returns. Back (for a while anyway) to mostly Large Caps.

This post was not in any way and should not be construed as a recommendation to purchase any type of security. I have posted my personal opinions, and they in no way reflect the opinions or recommendations any other business firm.

 

[MIBizInsurance]

All you can do is work hard. If your worried about isurance as a gig then your smart. Good or bad economy it's a tuff go.

There have been and always be ups and downs -the hard working, smart agents will survive.

Simple as that.

You may want to talk to Mr. Greenspan (sp) if you really want additional info.
Good luck