Allstate’s recent purchase of Esurance and its revamping of the Encompass model may have been unpleasant news for its distribution force, but it shouldn’t be a surprise. It only indicates that the insurer is finally recognizing the realities of today’s consumers. Insurance buyers want to do their own research online, work with an agent on the details and benefit by their expertise, and then make the purchase where, when and how they want to.
Smart independent agents have been providing this multi-level service for some time now. Informative and interactive websites that allow prospects to compare rates, access valuable information and tap into the expertise of an independent agent a click away have provided the consumers the user experience they have come to expect in today’s social media and highly technology-based environment.
The Personal Lines Growth Alliance is working to help its members build that better partnership with their carrier markets and solution providers to meet changing consumer expectations. To best compete in the marketplace of the future, agents need to improve their online awareness to include stronger, updated websites, quick quotes, chat, educational content, community service, employee engagement, social media, and a strong focus on search engine optimization.
With a strong, comprehensive plan, independent agents will have nothing to fear from the other distribution channels; they just need to take those first steps.
For those captive agents interested in shifting from being an employee to an entrepreneur, there are a few things they should consider.
- As a captive agent, you most likely don’t own your accounts. This means that finding company appointments without a book to move over will be difficult on your own.
- Look at your contract with the captive for any non-compete clause and determine what impact that will have on your plans.
- One option “new” independent agents--those starting from scratch without an established book--, can look into is connecting with an agency alliance or cluster; there are a lot of them. One such cluster is Pacific Interstate Insurance Brokers (PIIB), a 17-year-old cluster with more than 100 affiliated agencies. For a small monthly fee, the agent gets direct access to the companies within the cluster, most with their own code.
The last point, and certainly not the least, is the shift in the business mindset to that of an independent agent, which focuses on finding the right carrier for each client as well as the right products. The relationship between agent and client therefore becomes more of “respected advisor” as opposed to “seller and buyer.”
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