Consumers should be very cautious in buying directly from the insurance company, because they’ll be dealing with a company EMPLOYEE, who is trained by the employer to sell the products and limits the employer/insurance company wants to sell, not necessarily that which the customer needs. That’s why an agent/Producer is need and useful. The Producer should analyze the client’s needs, and sell the policies, coverage and limits that best suit the client’s needs. I’ve seen way too many situations in which the customer/insured was NOT given full explanations, did NOT have his or her or their exposures identified, and thus ended up paying premiums for policies that were deficient. I’ve been an expert witness in over 1,700 lawsuits since 1984, and I’ve been a NJ Producer since 1955. I have a law school degree as well. An experienced and capable Producer will conduct a survey of a client’s exposures and determine the needs, and the limits.
Very good post Armando. Many, many companies would like to cut the Independent agent off and do business direct. Some want the agent to sign up for a service center and let them handle the customer. They do seem to have a problem explaining rate increases and tick the customer off and the business leaves. That is why we didn’t sign up for it since we prefer to handle problems and if necessary, move the business to another market instead of losing the business.
Armando – your point makes sense in theory, however, the same problem exists with producers/agents and their intrinsic incentives . Agents may sell you the product that they can make the most commission out of.so, it;s not cut and dry honestly
Consumers should be very cautious in buying directly from the insurance company, because they’ll be dealing with a company EMPLOYEE, who is trained by the employer to sell the products and limits the employer/insurance company wants to sell, not necessarily that which the customer needs. That’s why an agent/Producer is need and useful. The Producer should analyze the client’s needs, and sell the policies, coverage and limits that best suit the client’s needs. I’ve seen way too many situations in which the customer/insured was NOT given full explanations, did NOT have his or her or their exposures identified, and thus ended up paying premiums for policies that were deficient. I’ve been an expert witness in over 1,700 lawsuits since 1984, and I’ve been a NJ Producer since 1955. I have a law school degree as well. An experienced and capable Producer will conduct a survey of a client’s exposures and determine the needs, and the limits.
Very good post Armando. Many, many companies would like to cut the Independent agent off and do business direct. Some want the agent to sign up for a service center and let them handle the customer. They do seem to have a problem explaining rate increases and tick the customer off and the business leaves. That is why we didn’t sign up for it since we prefer to handle problems and if necessary, move the business to another market instead of losing the business.
Armando – your point makes sense in theory, however, the same problem exists with producers/agents and their intrinsic incentives . Agents may sell you the product that they can make the most commission out of.so, it;s not cut and dry honestly