Sunday, July 09, 2017

Delaware Business Insurance Update from CNC Insurance Associates Inc. "Will Tech Replace The Need For Agents?" 7-8-17

I have been in the insurance business as an agent for over 23 years. As long as I can remember, so called experts have been predicting the demise of the insurance agent. Now in 2017 this cry of extinction is louder than ever. They even have a word for it, "disintermediation", or in layman terms, "replacing the middle man". The thought is that technology will make buying insurance so easy and uncomplicated that insurance companies can go directly to the customer and by-pass the need to use agents as their selling arm. The advancement of this technology will allow customers to buy insurance anytime , anywhere, and for any risk, in real time. Now I think this actually may be happening. Websites that I have seen from some very sophisticated insurance companies, make buying insurance look like buying anything else online. However, when it comes to insurance,    the real issue is after the sale. The insurance contract is just that a "contract", and a complicated one at that. The thought of a consumer dealing online with claim problems, or policy changes, or updates to their risk needs, is very unsettling. I know this because we solve these problems for our clients every day and the insurance companies don't make it easy. This is where the agent and broker shine. They bring value and advocacy. Clients will always need an agent to fight the battles of insurance for them on a day to day basis. The client may have to pay the agent directly, but the demise of the insurance agent is greatly over exaggerated, once again. Until next time be careful out there and know your risks.

G. Kevin Nemith President of CNC Insurance Associates & The Business Insurance Center
Serving DE,MD, NJ, PA, & VA