Will insurance agents be needed in the future?

Why should the insurance company give the commission to an agent if the consumer can get a quote online? They need licensed and knowledgeable agents to serve and maintain customer relationships, and they are looking for the next generation of young talent entering the insurance industry (as well as experienced insurance professionals who already know things). David spent his early career in Investment Banking and Private Equity, transitioning to the world of startups and insurance while earning his MBA from the Wharton Business School. As a millennial who entered the insurance industry 2 years ago, I scratch my head (and occasionally want to drill a hole in the wall) working with old technology systems. While a future in which technology renders insurance agents obsolete is far away, many new technologies pose threats.

The agent takes the time to understand what the consumer needs and relates it to the right insurance company. Insurance agents will continue to be needed to interact with customers and provide a human face after the insurance purchase has been made, meaning that while some insurance agents may be less involved in the initial sales process, industry demands will lead to their work is to be modified rather than completely eliminated. When technology reaches a point where the work of an insurance agent could be threatened, both insurance companies and all independent insurance agents will be affected. Whether true or not, there is a consumer perception that personal line insurance is a commodity, which makes buying prices online a formidable force for agents.

However, independent insurance agents won't have to worry about being fired because they're not employees of an insurance company. The amount of money insurance agents earn annually can differ greatly from agent to agent, depending on the amount of commissions they earn and other factors. Considering the discrepancy in earnings, the BLS also states that while the total number of insurance agents is likely to increase, there is also likely to be a high turnover rate, as lower-paid insurance agents who cannot earn enough commissions abandon their positions in favor of other jobs. This skill is vital when it comes to selling life and health insurance, which life insurance agents use well.

An important role for insurance agents is to work for an insurance company and sell any type of insurance offered by their company. So what does all of this mean for the local insurance agent? The agent model will change shape, but it will not disappear. In addition to the overall growth that creates more job openings for insurance agents, this high turnover rate will also result in the availability of many job opportunities. You have online insurance quotes, chatbots, and you can even buy your insurance policy without ever talking to a human being.

Angelia Brazille
Angelia Brazille

Unapologetic tv guru. Hardcore travel maven. Total travel fanatic. Typical twitter geek. Hardcore explorer.

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