Will Technology Kill the Agent?

[scagnt83]

As for permanent products couldn't a company just attach a fact finder and the offer recommendations? Of course I do understand perm products are more complicated but to the purchaser it maybe just another purchase especially if recommended by a insurance counselor.

No. There are multiple ways to design a Permanent policy. For FE and GUL you could possibly do that. But for a Par WL or any UL other than GUL it would take 20 pages explaining various options for the client to choose from... it would also be very risky from a liability standpoint for the carrier to let the client choose without an expert helping to guide them. When I try to explain CVAT vs. GPT to an agent many do not get it the first time... if agents have trouble understanding a consumer certainly would.

 

[VolAgent]

Real buyers want it easy. Of course, their opinion of easy may vary, but my experience has taught me they want it easy.

If technology makes it easy for them, then they will go that way. If the agent makes it easy, then they go that way.

My experience has shown me most real buyers get themselves so confused via the internet, they are glad to have an agent walk them through the process and simply everything.

 

[scagnt83]

Real buyers want it easy. Of course, their opinion of easy may vary, but my experience has taught me they want it easy.

If technology makes it easy for them, then they will go that way. If the agent makes it easy, then they go that way.

My experience has shown me most real buyers get themselves so confused via the internet, they are glad to have an agent walk them through the process and simply everything.

I agree. They are almost always glad to have a nonpushy educated agent walk them through the process. And if they are able to conveniently complete that process with electronic app and signatures then they are even more happy.

Its the agent who embraces technology that will survive/thrive.

Using something like the ezlife term/gul sales system is a great example of agents thriving via new technology. If a client wants to fill out the app themselves via a website the agent can have a site out there that allows them to do that. If the agent is f2f with the client they can do a quick electronic app with digital signatures and everything, even delivery papers can just be a typed signature.

In the next 5-10 years or so I would bet that agents using paper apps will be a thing of the past.... or at least the successful agents will have totally embraced electronic apps.

I could even imagine carriers doing a surcharge if a paper app is used in the future. It takes more admin hours from a carrier standpoint which means it costs more money. F&G is a good example at the moment, they basically have a fire sale on their 5 year MYGA, but it is only through an online app... and it pays 0.55% more than the closest competitor... it has to make you wonder if the admin/input cost to the carrier is around 0.5%??

 

[dward]

Remember, life insurance companies want to get people to buy for them. They are businesses. That's their goal right?

It's all about distribution.

If they can do it for $30 per click, why pay thousands of dollars in commissions to an agent that you need to recruit, train, manage, and pay commissions?

Hypothetically if someone walked up to you on the street and asked to buy a policy from you that would be great. You want to sell them a policy. Now what if after you met that person, a lead vendor offered to sell you a lead for that same person you just met on the street. Would you buy it? No. You met that person without having to buy a lead. So if an insurance company could sell a policy without paying an agent would they? If you were an insurance company would you?

We all know that agents aren't going to be replaced and people will always need advice. Technology just changes the way consumers are going to get that advice. If you give it to them on the phone or give it to them in person you can still give them the same advice.

I also don't think it's fair to lump everyone who sells online or over the phone into a group of people who don't do what's right for a client. Just like there are crappy agents selling online, there are also crappy agents selling in person. Consumers want advice and counsel. If you believe that you can't give great advice and counsel without sitting at across from them at Starbucks, you might also think that denial is just a river in Egypt.

 

[WinoBlues]

I agree. They are almost always glad to have a nonpushy educated agent walk them through the process. And if they are able to conveniently complete that process with electronic app and signatures then they are even more happy.

Its the agent who embraces technology that will survive/thrive.

Using something like the ezlife term/gul sales system is a great example of agents thriving via new technology. If a client wants to fill out the app themselves via a website the agent can have a site out there that allows them to do that. If the agent is f2f with the client they can do a quick electronic app with digital signatures and everything, even delivery papers can just be a typed signature.

In the next 5-10 years or so I would bet that agents using paper apps will be a thing of the past.... or at least the successful agents will have totally embraced electronic apps.

I could even imagine carriers doing a surcharge if a paper app is used in the future. It takes more admin hours from a carrier standpoint which means it costs more money. F&G is a good example at the moment, they basically have a fire sale on their 5 year MYGA, but it is only through an online app... and it pays 0.55% more than the closest competitor... it has to make you wonder if the admin/input cost to the carrier is around 0.5%??

The future is now. Genworth will not pay comp if you submit a paper app under $100,000 And Sagicor cuts comp if you submit a paper app under age 65.

Technology will not kill the agent, the lack of it will.

 

[SeanB]

embrace the change, maybe you can develop the system to put agents out of business and sell it to the insurance companies.. But I get 10% cuz technically that was my idea©

 

[scagnt83]

The future is now. Genworth will not pay comp if you submit a paper app under $100,000 And Sagicor cuts comp if you submit a paper app under age 65.

Technology will not kill the agent, the lack of it will.

Oh wow. I had no clue. I don't write life with those two.

Now if I could only predict the lottery numbers!

 

[sbkarren]

DHK,

You said "As agents are aging (average age is mid-50's) and phasing themselves out... this can create a huge opportunity for those who are properly trained to capitalize on it." and I agree.

The question I hope you (or anyone) can begin to answer is how would the new agents capitalize on it?

I work for a firm that sets in-office appointments for P&C agents, and over the years we have seen a slow but evident decline in the percentage of customers who are willing to go into an agent's office for a Policy Review. In-office, face-to-face appointments seem to be preferred by Agents, but we don't see many agents interested in keeping up with technology and setting up phone-based appointments, or Skype or Zoom-style video appointments.

Thoughts? I am very curious to know what Agents are being told about how to properly harness technology to their advantage.

-Boyd

 

[scooter33]

DHK, You said "As agents are aging (average age is mid-50's) and phasing themselves out... this can create a huge opportunity for those who are properly trained to capitalize on it." and I agree. The question I hope you (or anyone) can begin to answer is how would the new agents capitalize on it? I work for a firm that sets in-office appointments for P&C agents, and over the years we have seen a slow but evident decline in the percentage of customers who are willing to go into an agent's office for a Policy Review. In-office, face-to-face appointments seem to be preferred by Agents, but we don't see many agents interested in keeping up with technology and setting up phone-based appointments, or Skype or Zoom-style video appointments. Thoughts? I am very curious to know what Agents are being told about how to properly harness technology to their advantage. -Boyd

I think we (agents) have multiple threats. Technology is definitely one of them. The ability for consumers to get quotes online in a few mins...although not accurate or proper coverages, most consumers , especially younger generation consumer just care about the bottomline.

I think the bigger threat is the carriers we write for. Just about all carriers have made insurance into a comondiy. I truly do believe the days for agencies that sell personal lines P&C are numbered.

Will all that said, I do think the need for commercial insurance agents are here to stay due to the complexity of the coverages. Also, business owners tend to be a bit more concerned about the coverages.

Carriers are already cutting commissions, the writing is on the wall.

 

[DHK]

DHK,

You said "As agents are aging (average age is mid-50's) and phasing themselves out... this can create a huge opportunity for those who are properly trained to capitalize on it." and I agree.

The question I hope you (or anyone) can begin to answer is how would the new agents capitalize on it?

I work for a firm that sets in-office appointments for P&C agents, and over the years we have seen a slow but evident decline in the percentage of customers who are willing to go into an agent's office for a Policy Review. In-office, face-to-face appointments seem to be preferred by Agents, but we don't see many agents interested in keeping up with technology and setting up phone-based appointments, or Skype or Zoom-style video appointments.

Thoughts? I am very curious to know what Agents are being told about how to properly harness technology to their advantage.

-Boyd

The bigger the company and the more captive the agent... the less likely and less open they may be to change.

How would I capitalize on the retiring agent force? By maintaining consistent contact with those with whom you have started & built a relationship with.

Here's a true story from my own life. Let me tell you that I'm NOT an easy sale... but I love to buy. Way back then, I was into network marketing. I answered somebody's ad. Even though after the guy reached out to me (and I told him of my disinterest), he continued to mail something to me every month. No telephone calls... just an article or a cassette tape or something by the end of the first week every month... like clockwork.

After a while, I was wondering why he's doing this? Either he knows what he's doing... or he's making good money so he can waste it on me... or both. After 18 months of continuous mailings, I finally joined this guy with his MLM program way back then. His name was Norm Klootwyk out of Marshalltown, IA. We finally met at a seminar about a year after I got started with him. I don't know if he's still alive or not... but nearly 20 years later, I still remember his name and where he's from.

If you want to build relationships like this that can last... you have to maintain contact and build relationships. It'll take patience, but it works.

That was the only time any kind of marketing every really 'worked' on me, and I actually enjoyed it.


So, how can we do this as agents? Be more disciplined than your competition.

Stop missing the easy sales

As far as technology, I'd probably look at TeamViewer. It's free (for non-commercial use, but I won't tell them if you won't) and integrates well with Outlook. You can also set up meetings with up to 25 people. Set up an easel and a writing pad or dry/erase board... along with a webcam... and you'll be all set. Also, you can do a 'screenshare' and show people their documents or other pertinent information during the appointment.

I also happen to like using TimeTrade as an appointment scheduling tool. Online Appointment Scheduling Software | Online Scheduling Solutions It's easy to cancel, reschedule, and ask for appointments this way. People can check and set appointments on their schedule... not just when you want to call them. If you're out going door-to-door, you can use a data-plan on your phone and access the weblink to set appointments "on the go". I know there's an app for the iPhone/iPad, but I don't have one.

The demographics of our ideal clients are more tech savvy than carriers will admit. If you can integrate more into a tech savvy method of marketing and communicating, you'll probably do better, especially with the younger crowd.