They are always trying to circumvent the independent agent who made them. Independent agents need to stop writing business with them. They offer nothing you can not get elsewhere.
Absolutely ON TARGET!
Boot ’em! That is the ONLY way they’ll get the message. I doubt they could replace our collective volume via the internet – prior to ‘filing’. But, that’s pie in the sky. Agents act as if they have a death wish when it comes to such things.
You think if you stop writing business with Hartford it’s going to make them like agents? What kind of logic is that? If independents were writing enough with them, then wouldn’t have to venture out and do these side deals like this. If the independents stop producing with them, they’ll just go fully direct. This is why companies are dumping agents, because agents thing they’re the best thing since sliced bread.
How about this, agents: Spend some money and create a website where customers can buy policies. You get your commission and the customer doesn’t have to deal with you.
There are a lot of emotions to this discussion and something I’ve spent a lot of time considering in my own agency. In our agency, we only represent one company with a dual distribution model – and only because we can not find someone else to write the business that they write for us. I don’t believe a company can be committed to two strategies that have inherit conflicts successfully. We want to work with companies 100% committed to our distribution channel so that we can best serve our clients. I’ve often responded to dual distribution channel companies that telling me that they are committed to me is like me telling my wife that I am committed to her and our familyi, but that I insist on keeping another girlfriend on the side. Certainly I am not fully committed to her and our relationship and family would suffer.
I would challenge every agency to consider how committed a dual distrubution company is to their agency force – and use that as the basis for whether or not to do business with such a company.
At the same time, we need to promote our value as independent agents, lest it be overlooked by less knowledgeable industry personnel that often make business strategy decisions. Choice, relationship, local service, trust, professional advice, retention, policy administration, etc. make us uniquely superior to the internet or 1-800 numbers. However, 85% of the commercials I see on TV are used to persuade people that buying on the internet is a good thing – and eventually it has a brainwashing effect.
I am not convinced that the Trusted Choice brand initiative by IIABA is the solution to combat the adverstising challenge, but I believe it is in the ballpark of a solution.
As a side note, isn’t it intersting that while some independent agency companies are trying direct sales, many direct writers are looking to independent agents to attract the best customers? My choice has been to not entertain the GEICO’S, AAA’s etc who want to get the business of independent agents while at the same time they hurt the perception of the independent agent’s value with their adverstising.
There is a lot to understand about our business and how it works. It is easy for people new to the industry or even some long timers not to understand the value that independent agents bring to a company. On the other hand, there are many companies who have identified the value of the independent agent’s role – and generally have been very successful and will continue to succeed. I think it is only those companies who couldn’t deliver a good product, service & business model through the independent agents in the first place who turn to selling direct over the internet – where I am sure they will not succeed to any great amount either. Signed, 20 years of humble industry experience.
Re-Post (I couldn’t stand my typos and grammatical errors).
There are a lot of emotions to this discussion and something I’ve spent a lot of time considering in my own agency. In our agency, we only represent one company with a dual distribution model – and only because we can not find someone else to write the business that they write for us. I don’t believe a company can successfully be committed to two strategies that have inherit conflicts. We want to work with companies 100% committed to our distribution channel so that we can best serve our clients. When a company who uses a dual distribution model tells me they are committed to the independent agency system, I liken it to me telling my wife that I am committed to her and our family, but that I want to keep a girlfriend on the side. Certainly I am not fully committed to my wife or family if I insist on such a dual strategy and my relationships and family would suffer.
I would challenge every agency to consider how committed a dual distribution company is to their agency force – and use that as the basis for whether or not to do business with such a company.
At the same time, we need to promote our value as independent agents, lest it be overlooked by less knowledgeable industry personnel that often make business strategy decisions. Choice, relationship, local service, trust, professional advice, retention, policy administration, etc. make us uniquely superior to the internet or 1-800 numbers. However, 85% of the commercials I see on TV are used to persuade people that buying on the internet is a good thing – and eventually it has a brainwashing effect.
I am not convinced that the Trusted Choice brand initiative by IIABA is the solution to combat the advertising challenge, but I believe it is in the ballpark of a solution.
As a side note, isn’t it interesting that while some independent agency companies are trying direct sales, many direct writers are looking to independent agents to attract the best customers? My choice has been to not entertain the GEICO’S, AAA’s etc who want to get the business of independent agents while at the same time they hurt the perception of the independent agent’s value with their advertising.
There is a lot to understand about our business and how it works. It is easy for people new to the industry or even some long timers not to understand the value that independent agents bring to a company. On the other hand, there are many companies who have identified the value of the independent agent’s role – and generally have been very successful and will continue to succeed. In many cases companies who couldn’t deliver a good product, service & business model through the independent agency system, turn to selling direct over the internet. In many of those cases I doubt they will find success. How many times have we seen some companies in this industry change directions – almost if they have no idea as to where they have been in the past.
Pretty well said. Actually didn’t notice enough grammar/punctuation errors to need a re-posting. Insurance seems simple enough especially if you never have to use it or never have a change in your particular situation; but the internet relationship will just put the hammer in the company’s hands and the insureds will have no leverage or anyone to help them in the absence of an altruistic insurance company.
Altruistic insurance companies don’t exist so the net loser is the insured. The companies who have used dual marketing (remember banks & Savings & Loans? they’re smart, right……) have never bothered me. I can combat a 10% premium difference but not unfair competition in the form of “lower than cost” rates which the insurance companies seem to use to compete with us occasionally.
Here in IL there are some fine regional companies, like Erie, Auto Owners, West Bend, etc. Those 3 companies do a great job with their agents and limit their representation. I am not competing against 5,000 other Erie or AO or WB agents. Erie has done a pretty good job and I do know that they won another JD Power award.
They are always trying to circumvent the independent agent who made them. Independent agents need to stop writing business with them. They offer nothing you can not get elsewhere.
Absolutely ON TARGET!
Boot ’em! That is the ONLY way they’ll get the message. I doubt they could replace our collective volume via the internet – prior to ‘filing’. But, that’s pie in the sky. Agents act as if they have a death wish when it comes to such things.
You think if you stop writing business with Hartford it’s going to make them like agents? What kind of logic is that? If independents were writing enough with them, then wouldn’t have to venture out and do these side deals like this. If the independents stop producing with them, they’ll just go fully direct. This is why companies are dumping agents, because agents thing they’re the best thing since sliced bread.
How about this, agents: Spend some money and create a website where customers can buy policies. You get your commission and the customer doesn’t have to deal with you.
There are a lot of emotions to this discussion and something I’ve spent a lot of time considering in my own agency. In our agency, we only represent one company with a dual distribution model – and only because we can not find someone else to write the business that they write for us. I don’t believe a company can be committed to two strategies that have inherit conflicts successfully. We want to work with companies 100% committed to our distribution channel so that we can best serve our clients. I’ve often responded to dual distribution channel companies that telling me that they are committed to me is like me telling my wife that I am committed to her and our familyi, but that I insist on keeping another girlfriend on the side. Certainly I am not fully committed to her and our relationship and family would suffer.
I would challenge every agency to consider how committed a dual distrubution company is to their agency force – and use that as the basis for whether or not to do business with such a company.
At the same time, we need to promote our value as independent agents, lest it be overlooked by less knowledgeable industry personnel that often make business strategy decisions. Choice, relationship, local service, trust, professional advice, retention, policy administration, etc. make us uniquely superior to the internet or 1-800 numbers. However, 85% of the commercials I see on TV are used to persuade people that buying on the internet is a good thing – and eventually it has a brainwashing effect.
I am not convinced that the Trusted Choice brand initiative by IIABA is the solution to combat the adverstising challenge, but I believe it is in the ballpark of a solution.
As a side note, isn’t it intersting that while some independent agency companies are trying direct sales, many direct writers are looking to independent agents to attract the best customers? My choice has been to not entertain the GEICO’S, AAA’s etc who want to get the business of independent agents while at the same time they hurt the perception of the independent agent’s value with their adverstising.
There is a lot to understand about our business and how it works. It is easy for people new to the industry or even some long timers not to understand the value that independent agents bring to a company. On the other hand, there are many companies who have identified the value of the independent agent’s role – and generally have been very successful and will continue to succeed. I think it is only those companies who couldn’t deliver a good product, service & business model through the independent agents in the first place who turn to selling direct over the internet – where I am sure they will not succeed to any great amount either. Signed, 20 years of humble industry experience.
Re-Post (I couldn’t stand my typos and grammatical errors).
There are a lot of emotions to this discussion and something I’ve spent a lot of time considering in my own agency. In our agency, we only represent one company with a dual distribution model – and only because we can not find someone else to write the business that they write for us. I don’t believe a company can successfully be committed to two strategies that have inherit conflicts. We want to work with companies 100% committed to our distribution channel so that we can best serve our clients. When a company who uses a dual distribution model tells me they are committed to the independent agency system, I liken it to me telling my wife that I am committed to her and our family, but that I want to keep a girlfriend on the side. Certainly I am not fully committed to my wife or family if I insist on such a dual strategy and my relationships and family would suffer.
I would challenge every agency to consider how committed a dual distribution company is to their agency force – and use that as the basis for whether or not to do business with such a company.
At the same time, we need to promote our value as independent agents, lest it be overlooked by less knowledgeable industry personnel that often make business strategy decisions. Choice, relationship, local service, trust, professional advice, retention, policy administration, etc. make us uniquely superior to the internet or 1-800 numbers. However, 85% of the commercials I see on TV are used to persuade people that buying on the internet is a good thing – and eventually it has a brainwashing effect.
I am not convinced that the Trusted Choice brand initiative by IIABA is the solution to combat the advertising challenge, but I believe it is in the ballpark of a solution.
As a side note, isn’t it interesting that while some independent agency companies are trying direct sales, many direct writers are looking to independent agents to attract the best customers? My choice has been to not entertain the GEICO’S, AAA’s etc who want to get the business of independent agents while at the same time they hurt the perception of the independent agent’s value with their advertising.
There is a lot to understand about our business and how it works. It is easy for people new to the industry or even some long timers not to understand the value that independent agents bring to a company. On the other hand, there are many companies who have identified the value of the independent agent’s role – and generally have been very successful and will continue to succeed. In many cases companies who couldn’t deliver a good product, service & business model through the independent agency system, turn to selling direct over the internet. In many of those cases I doubt they will find success. How many times have we seen some companies in this industry change directions – almost if they have no idea as to where they have been in the past.
Signed, 20 years of humble industry experience.
Pretty well said. Actually didn’t notice enough grammar/punctuation errors to need a re-posting. Insurance seems simple enough especially if you never have to use it or never have a change in your particular situation; but the internet relationship will just put the hammer in the company’s hands and the insureds will have no leverage or anyone to help them in the absence of an altruistic insurance company.
Altruistic insurance companies don’t exist so the net loser is the insured. The companies who have used dual marketing (remember banks & Savings & Loans? they’re smart, right……) have never bothered me. I can combat a 10% premium difference but not unfair competition in the form of “lower than cost” rates which the insurance companies seem to use to compete with us occasionally.
Here in IL there are some fine regional companies, like Erie, Auto Owners, West Bend, etc. Those 3 companies do a great job with their agents and limit their representation. I am not competing against 5,000 other Erie or AO or WB agents. Erie has done a pretty good job and I do know that they won another JD Power award.