Posted On: June 30, 2008, 9:34 am CDT

Posted By: Super Fly!

Carriers cut back on quality and high service levels to be able to lower price and sell on price. Carriers would LOVE to offer higher levels and invest in that value-add, however, the majority (not all) of agencies sell purely on price to thier clients. Thus, if that's the only thing agents can sell on, that's what the carriers will concentrate on offering (price in lieu of higher service levels).

Here's the sad part - when agents sell purely on price and turn and burn clients, they're not really offering any additional value of thier services when compared to a direct carrier. Agents must make a proposition for thier value to thier clientelle in order to retain clients - otherwise, why not cut out the commission and go direct?