Insurance agents risk facing additional marginalization if they do not evolve and get creative, according to a rather devastating report by McKinsey & Co. on the future of property and casualty insurance agents.
The role of the agent in some lines, such as auto, is becoming obsolete, while other lines are similarly approaching commoditization, which means agents can be bypassed, according to the report by McKinsey & Co.'s Insurance Practice.
"The hard truth is that most agents have neither the scale nor the operational efficiency to profitably sell a commodity (or even a near-commodity)," the report noted.
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