Agents at a crossroad

With the insurance companies making more money than ever and the increasing commodization of the business, independent agents find themselves at a crossroad. Historically, agents have been more than sellers of insurance they have been advisors and counselors of insurance and risk. Clients have always had the advantage of getting great service from agents and not having to pay for it other than the premiums since insurance companies pay the agents a commission. As companies have pushed agents for more and more growth while lowering commissions, agents are trying to continue to give the same amount of service under more and more pressure. Agents are faced with trying to serve two masters, growth for the insurance companies & quality service to their clients all the while getting paid less. Something has to give. If agents continue on this path, they will not be able to sustain their businesses. The answer may be in fee for service or the answer may be in consolidation of agencies as seen in mature industries that move toward commodization. No one knows for sure, but time will tell. Until next time be careful out there and know your risks. K

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