December 6, 2019 By Scott Trantham
The insurance industry, and the agents that
champion it, are affected by change, just like any other business. However, the
changes are slow in coming. With advances in technology, most people can buy
anything with their phones–on the comfort of their own couch.
It’s a bright idea to keep your skill sharp. You don’t want to
fall behind in your industry.
While captive agents are
aligned with the more traditional insurance narratives, independent agents are
seeing more freedom in how they interact with their client base. However, each
niche in the industry is affected by market trends, and the smart agent stays
on top of them.
Technology
As we talked about earlier, smartphones have
changed a lot. People don’t even have to own a computer now to research insurance
policies, contact agents, and have conversations about their purchases. We’ve
got a faster, better-informed generation of people looking for coverage.
Apps have bashed their way in, drawing a huge
number of consumers with their conveniences. Basically, as people use technology to
buy things in new ways, they’ll expect many industries to adapt to them. If
you’re an insurance firm looking to break into a new market, look at what Uber
is doing and try to adopt a similar model.
Local vs. Social Media
With the information exchange, it can be hard
to decide on a venue to focus on. For agents, the local scene was the best
place to invest time and resources. You could capitalize on word-of-mouth and
local ads to gain a client base.
However, now everyone can use a search engine
to find information. So, it’s no longer about just your local clients. Now, a
new obstacle is balancing them with a wider, online audience.
With a new digital era comes a shift in trust.
People want to see someone with a user profile online, so they can check out
the agent before contacting them. A trustworthy profile on any social media is
one asset any marketer can benefit from having.
However, with important purchases like
insurance, it is still important for a local presence. While there are more
ways to gather information, people still find comfort in speaking face to face
with someone.
In essence, agents should evolve to embrace
both worlds.
You can run a successful business all in the palm of your hand!
You just need to streamline the apps that are most useful.
Terminology
The big terms defining the insurance industry
are now less defined. A decade ago, you could rely on terminology like “captive,
direct channel, or independent agent,” now it’s not as black and white.
It’s become easier and more lucrative to work
across industry channels. Captive agents find their companies talking with
independent ones more. This is driven by the consumer base. With clients
shopping around so much, and with a wider variety of brokers, it makes sense
that the entire industry would become more fluid.
All of these together make up the power shift
from underwriters to distribution (insurance
agencies). In years past, underwriters were the real moneymakers
when it came to policy sales. Now? Insurance agents are holding more power and
more responsibility.
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