They say they cut out the agent and that is how they reduce cost. This is straight from their website. They are not eliminating the commission. They are replacing the agent as the new agent.
How does Gabi get compensated?
We get paid a commission directly from the insurance carriers when we become your agent of record. Although some carriers don’t allow us to be your agent, we believe it is more important to tell you about the best deal even if we don’t receive a commission. Insurance rates are cyclical so at some point down the road we would be able to switch you to one of our appointed carriers when the savings is right. We trust that you will like us so much that you tell your friends and family about us too!
Every agent that I know is being pounded on retention, threatened to lose their carrier appointment if the agent markets their existing book too much, or switches their client too many times. Carriers care about retention. I do not see how the major carriers would suddenly throw out their business principles to all of a sudden openly shop for the very price sensitive consumer? We as agents have all seen the studies and reports to show that according to the insurance carriers, this is the least attractive, and least profitable segment. Case in point, Farmers bought 21st Century, and after they saw the lackluster performance of the book, they non renewed the entire book of business except for two states. Lastly, as others have said, this site is not offering anything new. They are not working for free, so they are making the same commission any other agent would make. Something smells rotten.
It becomes very difficult for carriers to talk out of both sides of their mouths. I suspect this like many ideas like it in the past will be put to pasture.
So let’s see, Gabi advertises about “…eliminating $75 billion in commissions from agents…” but then turns around and receives that same commission themselves. Hmmm, I see you Gabi!
They say they cut out the agent and that is how they reduce cost. This is straight from their website. They are not eliminating the commission. They are replacing the agent as the new agent.
How does Gabi get compensated?
We get paid a commission directly from the insurance carriers when we become your agent of record. Although some carriers don’t allow us to be your agent, we believe it is more important to tell you about the best deal even if we don’t receive a commission. Insurance rates are cyclical so at some point down the road we would be able to switch you to one of our appointed carriers when the savings is right. We trust that you will like us so much that you tell your friends and family about us too!
So they sell a product they are not appointed to sell?
Interesting, but Gabi sounds like they operate just like an Independent Agency.
Every agent that I know is being pounded on retention, threatened to lose their carrier appointment if the agent markets their existing book too much, or switches their client too many times. Carriers care about retention. I do not see how the major carriers would suddenly throw out their business principles to all of a sudden openly shop for the very price sensitive consumer? We as agents have all seen the studies and reports to show that according to the insurance carriers, this is the least attractive, and least profitable segment. Case in point, Farmers bought 21st Century, and after they saw the lackluster performance of the book, they non renewed the entire book of business except for two states. Lastly, as others have said, this site is not offering anything new. They are not working for free, so they are making the same commission any other agent would make. Something smells rotten.
It becomes very difficult for carriers to talk out of both sides of their mouths. I suspect this like many ideas like it in the past will be put to pasture.
So let’s see, Gabi advertises about “…eliminating $75 billion in commissions from agents…” but then turns around and receives that same commission themselves. Hmmm, I see you Gabi!
or, Gabi leverages the carriers for more commission on the promise of volume of business…
What modeler thought up this idea?