The Online Playing Field - Level or Slanted?!
Posted on by Jason
I'd like to share with everyone a recent discussion we had at the office …
The premise: The increase in availability and the use of the internet by today’s consumers (and insurance purchasers) favors the direct writers and companies that focus much more heavily on direct marketing and the internet as a lead source. Does this create a disadvantage for independent insurance agencies?
What do I think? Not a chance. I prefer to think that the independent agency system exists because a significant portion of the general public has an inherent need to establish a personal, trusting relationship with whoever handles his/her financial and insurance well being. It is this need, along with the capabilities and professional expertise of insurance agents, that will ensure that the independent agency system will always exist.
What is the difference now though? Are direct writers grabbing a larger share of the population as compared to independent agents? Now, my thoughts are not based on specific reports, as that would vary widely from state to state, but rather an exploration of the reasons people go to one source or another for insurance and how technology has affected the way we communicate.
I think that the increased use of the internet and all the available methods of communication, research, and purchasing do indeed provide many more options for the consumer. But, I also feel that these capabilities have a tendency to make the consumer better informed, and as such, a better client for agents to serve.
There may have been a slight advantage to companies and direct writers when they started to exploit the online world, as they had more resources — and more strategic planning in place — than the local insurance agency. But today there is so much information available at little or no cost that the local agencies should, if they are thinking strategically, be taking advantage of online tools to connect and keep up with their clients [if you are an agency and are not doing this, then we need to talk!!!].
What do you think? Is the playing field more level now for independent agents?
Next we will post an opposing viewpoint. - JHH