If Independent Agents don’t stop using markets like Progessive and others who are determined to eliminate us, we will cease to exist. We need to use markets that are committed to Independent Agents only. We also need to stop support associations that support those markets as well like the so called Independent Agents Asscociation which is nothing more than an marketing organization.
Independent Agents have been expressing many of the issues for well over 20 years. Carriers need to decide which distribution model works best while looking for ways to enhance the relationship (contingencies or other compensation). I hope that top management at many of these companies gets the message before they ruin an important segment of the industry, the independent agency system. Agents work efficiently and have contributed to handsome profits to these comapnies for decades and need to be compensated appropriately in order to attract new talent. Looking at the advertising budgets of the direct writers, one can’t imagine that they are operating efficiently or providing the client better service by offering “direct” insurance. It amazes many of us as to how arrogant management has become. Selling and servicing insurance clients in today’s fragmented environment is more difficult (and fustrating) than it ever has been.
Easy solution, don’t place business with companies that are doing direct writing. There are a number of companies that support the independent agency system. Use them.
One of the issues this article raised was that it’s difficult for independent agencies to recruit new, young talent.
From my 27 years experience in the indusry, one of the main reasons agencies continuously lose their best people is because they make no effort to retain them. I’m not just talking about compensation, but understanding what talents the employee has, and providing opportunities for those skills and abilities to be used.
One incident that stands out for me was when I expressed a desire at one agency to take my career in a certain direction. The owners response was “No, you best serve MY needs in the position you’re in.” Needless to say, I found a position in less than two months that allowed me to pursue that career direction.
It’s not easy to recruit producers. Once you make the investment I think it would be rather stupid not to accomodate someone who’s productive and promising for the future. Sorry, Nobody Important, if it didn’t work out for you….As far as “doing business” with direct writers, we have had good success with some who compensate agents fairly (Liberty – Peeless) and those (Hartford), with their various other distribution channels (AARP, Paychex) who don’t. Guess what…they only get the business we can’t place anywhere else.
I have no idea what you are talking about John Q. I work for an independent agency company that does not use direct marketing. I simply think it’s in the best interest of the independent agencies to use companies like mine. Why work with companies that compete with you?
I have been with a couple of carriers that have been hiring and training recent college graduates to serve a variety of roles on the company-side. As a young insurange professional I can say it is a very rewarding career.
I don’t think the independent agent system is in jeopardy, however I agree that “..too many agents view their roles as product salesmen rather than trusted advisors or risk managers.” I generally service two kinds of agents– those that are advisors, risk managers, and provide a multitude of value-added services to clients, and those that strictly price shop.
I am glad to see the market hardening up a bit too as I think this will improve the amount and quality of risk management service provided by independent agents — after all, what small or mid-sized office has the money to hire dedicated loss prevention staff when the renewal premiums are down 20%?
Being a company person, Mr. Nobody, you probably don’t realize that in the real world of Independent Agents it’s difficult if not impossible to avoid doing business with a direct writer occaisionally (Progessive, Hartford) when they have products that nobody else has, such as unsupported w comp, sub-standard auto, etc. What you are suggesting is to let my clients go elsewhere just because I don’t like a carrier’s demeanor or style of doing business. Remenber that insurance is still a relationship business. Maybe you should work in an agency for a week or two to see what it’s like.
Another company person !!! I’m so glad you feel that your position at the company is rewarding. The article is about agent’s trying to attract and retain talent and to make doing business more interesting to new-comers as well as veterans (burn-out). Unfortunately, the ease of doing business with insurance companies and related compensation has become more difficult, not keeping pace with expenses that are passed on, therefore, making many who enter our side of the business, leave it.
If Independent Agents don’t stop using markets like Progessive and others who are determined to eliminate us, we will cease to exist. We need to use markets that are committed to Independent Agents only. We also need to stop support associations that support those markets as well like the so called Independent Agents Asscociation which is nothing more than an marketing organization.
Independent Agents have been expressing many of the issues for well over 20 years. Carriers need to decide which distribution model works best while looking for ways to enhance the relationship (contingencies or other compensation). I hope that top management at many of these companies gets the message before they ruin an important segment of the industry, the independent agency system. Agents work efficiently and have contributed to handsome profits to these comapnies for decades and need to be compensated appropriately in order to attract new talent. Looking at the advertising budgets of the direct writers, one can’t imagine that they are operating efficiently or providing the client better service by offering “direct” insurance. It amazes many of us as to how arrogant management has become. Selling and servicing insurance clients in today’s fragmented environment is more difficult (and fustrating) than it ever has been.
Easy solution, don’t place business with companies that are doing direct writing. There are a number of companies that support the independent agency system. Use them.
One of the issues this article raised was that it’s difficult for independent agencies to recruit new, young talent.
From my 27 years experience in the indusry, one of the main reasons agencies continuously lose their best people is because they make no effort to retain them. I’m not just talking about compensation, but understanding what talents the employee has, and providing opportunities for those skills and abilities to be used.
One incident that stands out for me was when I expressed a desire at one agency to take my career in a certain direction. The owners response was “No, you best serve MY needs in the position you’re in.” Needless to say, I found a position in less than two months that allowed me to pursue that career direction.
It’s not easy to recruit producers. Once you make the investment I think it would be rather stupid not to accomodate someone who’s productive and promising for the future. Sorry, Nobody Important, if it didn’t work out for you….As far as “doing business” with direct writers, we have had good success with some who compensate agents fairly (Liberty – Peeless) and those (Hartford), with their various other distribution channels (AARP, Paychex) who don’t. Guess what…they only get the business we can’t place anywhere else.
I have no idea what you are talking about John Q. I work for an independent agency company that does not use direct marketing. I simply think it’s in the best interest of the independent agencies to use companies like mine. Why work with companies that compete with you?
I have been with a couple of carriers that have been hiring and training recent college graduates to serve a variety of roles on the company-side. As a young insurange professional I can say it is a very rewarding career.
I don’t think the independent agent system is in jeopardy, however I agree that “..too many agents view their roles as product salesmen rather than trusted advisors or risk managers.” I generally service two kinds of agents– those that are advisors, risk managers, and provide a multitude of value-added services to clients, and those that strictly price shop.
I am glad to see the market hardening up a bit too as I think this will improve the amount and quality of risk management service provided by independent agents — after all, what small or mid-sized office has the money to hire dedicated loss prevention staff when the renewal premiums are down 20%?
Being a company person, Mr. Nobody, you probably don’t realize that in the real world of Independent Agents it’s difficult if not impossible to avoid doing business with a direct writer occaisionally (Progessive, Hartford) when they have products that nobody else has, such as unsupported w comp, sub-standard auto, etc. What you are suggesting is to let my clients go elsewhere just because I don’t like a carrier’s demeanor or style of doing business. Remenber that insurance is still a relationship business. Maybe you should work in an agency for a week or two to see what it’s like.
Another company person !!! I’m so glad you feel that your position at the company is rewarding. The article is about agent’s trying to attract and retain talent and to make doing business more interesting to new-comers as well as veterans (burn-out). Unfortunately, the ease of doing business with insurance companies and related compensation has become more difficult, not keeping pace with expenses that are passed on, therefore, making many who enter our side of the business, leave it.