by Lynne Wallace
It's common knowledge that Bill Cosby is being accused of sex crimes. He responds by calling his accusers "liars" potentially triggering at least defense cost coverage under his homeowners policy. Like it or not, this wouldn't have been possible were it not for the insurance agent out there somewhere who made sure Cosby's policy included personal injury coverage.
In San Francisco, the board of a homeowners association contracts for a major remodel. Along the way, a dispute arises and the board votes to withhold some of the amounts due the contractor. The contractor files a lien on the building making it impossible for a unit-owner to finalize the sale of his unit. The board is sued. Guess who negotiates and helps pay for the resolution...you guessed it, their insurance carrier, through a directors and officers liability policy put into effect by an astute insurance broker.
And whether it's the ACA, creating a quagmire of turmoil and uncertainty in health insurance, GoogleCompare moving in and out of personal auto coverage, or Zenefits offering to trade tech for insurance expertise, it's the well-educated, committed, and hard-working insurance agents that come to the rescue...a rescue that's becoming increasingly more complicated. Today, it's difficult for anyone to work superficially in insurance or to be much of a generalist.
Last week's "Why Insurance Disruption means Agent Elimination," generated some interesting insight...
"As marketing becomes more difficult and commission shares become more spread out, the need for agents increases but the availability decreases...." —Marty Gardner, Tennessee
"...(in health insurance) with all the regulations that came out of the ACA, agents can no longer dabble – it is not worth the liability issues! These regulations, of course, are a factor of the increased costs. The government rarely ever gets it right!"—Michael Milazzo, CLU, ChFC, New York
And check out the contrast in responses below...
"One thing is certain, survival will (as has always been the case) depend on one's ability to adapt and field whatever insidious curve balls legislators and market movers can throw at us!"—Quentin Ledford, ChFC, CASL, Tennessee
"The insurance companies have stopped paying us for our time. It is now like working for nothing. I am done with health insurance."—Bob Elmore, LUTCF, Florida
So there you have it, insurance professionals will continue to play a critical role in consumer protection. But soon fewer agents will make the choice to meet the new generation of consumer demand. These agents will need to be coverage experts, know compliance, have business acumen, and access tools and resources uniquely designed to leverage time. They will "go big" ... but many more will "go home!"
Yet, the insurance professional will not become extinct. Eventually the law of supply and demand will kick in. Seeing the incredible financial opportunity, a new generation will do what it takes to provide high-demand professional insurance services to, what will have become, a "parched public".
