In the shadow of the Affordable Care Act’s less-than-successful rollout and rising flood insurance rates, things may be looking grim for insurance professionals. Dire predictions on the future of healthcare and the phasing out of producers have plagued the industry in recent months, but they don’t tell the full story.
Here are five pieces of recent news to be especially grateful for this Thanksgiving.
1. A growing workforce for producers
The agent and broker sector is headed for a historic job peak, with 667,900 jobs as of July 2013. That’s close to the industry’s historic peak of 679,300 in July 2007, noted Insurance Information Institute President Robert Hartwig.
And the sector will only continue to grow. According to a recent MarshBerry study, more than 60% of independent insurance agencies plan on hiring new employees in 2014.
2. FSA participation set to increase
The announcement from the Treasury department that employers participating in flexible savings accounts can carry over up to $500 of their unused balances at the end of the year is set to increase rates of participation in FSAs.
According to Bob Natt, executive chairman of Alegus Technologies, the government change removed the biggest barrier to employer participation in FSAs: employee fear of using money. Already, 14mn American families participate in FSAs.
3. Clients are returning to producers on auto insurance
According to a recent study by The Hanover Group, 60% of consumers who use a direct writer like Geico or Progressive to purchase auto insurance eventually return to independent agents and brokers.
Findings of the study conclude that clients “like knowing who they are dealing with” and that their agent is experienced and part of their local community.
“The study shows that consumers realize the value that independent agents bring,” said Mark Desrochers, president of personal lines insurance at The Hanover. “Consumers really value the advice provided by independent agents and the personal relationships they build with their customers.”
4. For some, the ACA is a blessing
In the melee surrounding HealthCare.gov, it’s easy to forget that health reform is actually helping some people. Victims of domestic violence, for example, can now apply for health insurance without fear of being rejected due to “preexisting conditions.”
Additionally, young people under 26 who previously went uninsured or elected coverage under their parents are expressing interest in gaining coverage. According to the US Census Bureau, the uninsured rate among young adults fell from 25.8% in 2011 to 24.3% in 2012, largely due to health reform.
5. Producers are gaining the spotlight
Even in the instances consumers are confused and frustrated with the ACA, there’s a silver lining for producers—people are turning to independent agents and brokers for solutions.
Even the Obama Administration has been touting the importance of a qualified producer, with Gary Cohen of the Center for Consumer Information and Insurance Oversight saying, “We need to work really hard to make sure we’re working with the agent-broker community.”
Federal exchange officials reported earlier this month that HealthCare.gov is attempting to bring 60,000 more ACA-qualified brokers and agents to the site.
