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 Posted: Tue Jan 20, 2009 4:48 am Post subject: Internet insurance cutting out agents |
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| I was wondering if all these company's I see on TV that sell insurance on the internet and do not use an agent and they give a discount if you buy on line,does this hurt sales for some agents, and is it possible this could eliminate the agents job. |
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TLE
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| Posted: Tue Jan 20, 2009 9:32 am Post subject: |
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| I doubt that of it would ever eliminate the agents job. Think of yourself TLE, would you like to discuss your situation with an agent or with a machine? even though you prefer buying a policy online it is advised that you discuss the details with an agent before actually buying the plan. |
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jeorge
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| Posted: Tue Jan 20, 2009 12:17 pm Post subject: |
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There is no doubt that insurance agents or agencies who fail to explore the idea of selling insurance online will fall behind those who do.
Not too long ago, I was involved in a situation where a company that I already represented was actually prospecting my existing customers. The customer brought me a postcard that said - "Buy online and save $300".
People buy everything online today and insurance is no different. |
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InsuranceMaze
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| Posted: Tue Jan 20, 2009 12:41 pm Post subject: |
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TLE it IS insurance agents and agencies that own those online sites.
What's sold online is "order taker" type insurance. Such as, term life insurance, auto insurance, Medicare supplements and very expensive guaranteed issue life insurance.
When was the last time you saw a TV commercial for an Irrevocable Life Insurance Trust funded with a Second-to-Die policy?
Or have you ever seen a commercial for a Crossed Purchase Buy-Sell Agreement?
Or a commercial for a 1035 exchange consolidation because you've got 6 old policies from the Nixon administration and need to clean things up?
So no, those TV commercials or online sites don't hurt our business in the least. They promote the insurance industry, give a client an idea of about what they should expect to pay but most people still want the services provided by an agent.
Press 1 for more information, or press # to hear these options again will NEVER replace an agent.
EVER.
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GarySpicuzza
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| Posted: Tue Jan 20, 2009 12:53 pm Post subject: |
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| May be true that the people with insurance initiative will buy online. but people having lesser information of insu products has to refer the agents. And afterall agents have the skills to turn negative people into positive feedback. |
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VIJAYRAJ
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| Posted: Wed Jan 21, 2009 3:33 am Post subject: |
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You may know what to do on your own if you have normal cough and flu. If you have more serious health problems, you need a physician to prescribe the right medicine.
Insurance agents are still relevant in the market place and they are very much needed to give their customers professional advice.
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Xoseph
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| Posted: Wed Jan 21, 2009 1:37 pm Post subject: |
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By going through the online materials you'd have an idea of the policy features. I'm sure, before investing a single penny upon a policy you'd like to know the benefits in greater details. An agent could be the best option to explain to you the pros and cons of all the named benefits.
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anonymous00
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| Posted: Wed Jan 21, 2009 5:31 pm Post subject: |
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| It just seems like if the insurance company can cut out the agent they will.Does it seem like they are trying when they offer a discount if you buy on line and whith them. can this hurt some agents that sell that type of insurance. |
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TLE
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| Posted: Thu Jan 22, 2009 3:57 am Post subject: |
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If a insurance company contacts its customers directly to offer discount, it certainly hurts the sales agents if the customers are secured by the sales agents.
I don't think insurance companies would like to compete with their own sales agents for the customers who are already in their book. In the long run, it would not benefit the insurance companies if the companies are dependent on sales agents for business.
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I am an insuranc sales coach for almost 2 decades. I have a collection of insurance agents' sales stories. To know more, you can visit http://www.stories-connect.com or http://xoseph.wordpress.com |
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Xoseph
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| Posted: Wed Jan 28, 2009 6:16 am Post subject: |
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The really crazy thing is that these online companies can not charge any less than an agent. Rates are determined by state DOIs for this reason. I compete directly against these call centers and the quotes they give to prospects are identical dollar for dollar for the same policy from the same company.
The saving money or online discount is just an advertising angle.
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beatuplunchbox
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| Posted: Thu Jan 29, 2009 6:30 pm Post subject: |
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| If they don't use the agent can they give a discount because they save money not paying the agent so they can lower the agents fee. |
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TLE
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| Posted: Thu Jan 29, 2009 9:38 pm Post subject: |
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TLE wrote:
| Quote: | | If they don't use the agent can they give a discount because they save money not paying the agent so they can lower the agents fee. |
This is an insurance misconception by the general public.
It is a third degree felony is most states to solicit the procurement of insurance by anyone who is not a licensed agent.
AND my next comment is going to sound like an oxymoron.
ONLY a licensed insurance agent can sell insurance.
See Florida Statute 626.7845
| Quote: | 626.7845 Prohibition against unlicensed transaction of life insurance.
(2) Except as provided in s. 626.112(6), with respect to any line of authority specified in s. 626.015(10), no individual shall, unless licensed as a life agent:
(a) Solicit insurance or annuities or procure applications; |
beatuplunchbox wrote:
| Quote: | The really crazy thing is that these online companies can not charge any less than an agent. Rates are determined by state DOIs for this reason. I compete directly against these call centers and the quotes they give to prospects are identical dollar for dollar for the same policy from the same company.
The saving money or online discount is just an advertising angle. |
That's right! EXACTLY CORRECT.
There's is no such thing as saving money because you bought over the phone or online. The "sales" and "marketing" perception they are wanting you to infer is EXACTLY what you wrote above TLE. "If they don't use the agent can they give a discount because they save money not paying the agent..."
While that's the intent of the advertized perception; it is not reality.
I'll quote myself from above:
| Quote: | | TLE it IS insurance agents and agencies that own those online sites. |
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GarySpicuzza
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| Posted: Fri Jan 30, 2009 9:02 am Post subject: |
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Gary, I think what has confused TLE (and I'm sure that its also confusing to many others) is the difference in price for the same coverage while purchasing online and from the agent.
What do you think is the reason behind this price difference?
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anonymous 12
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| Posted: Fri Jan 30, 2009 11:47 am Post subject: |
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| Quote: | Gary, I think what has confused TLE (and I'm sure that its also confusing to many others) is the difference in price for the same coverage while purchasing online and from the agent.
What do you think is the reason behind this price difference? |
anonymous 12, your perception is the reason behind this mythical price difference.
If Matrix Direct quotes you a price for your life insurance with West Coast Life and then you come to my office for a quote for life insurance with West Coast Life for the exact same coverage the premium will be exactly the same.
The exact same commission will be paid on that policy from the insurance company.
Matrix Direct just happens to be an online agency appointed with West Coast Life to sell their products, whereas I operate an agency within a brick and mortar building.
When the TV ad says, "save money buy online" that is a generic advertising phrase. They probably said the words FREE and NEW also! They NEVER claimed you'll pay less in premuim buying online than through an agent within a brick and mortar building for the exact same coverage with the exact same company.
There isn't any difference in price.
There is only a difference in perception.
Now I don't expect anyone to actually read a typical online disclosure statement but I've provided one below from an online agency.
| Quote: | All insurance quotes and products offered through QuickQuote Financial, licensed agency in FL L006551. Tim Bain, licensed agent in FL D068808.
Premium rates quoted are current as of 1/30/2009, as provided by QuickQuote Financial, Inc.'s partner insurance companies. The premium rates shown are for quoting purposes only and are not an offer of coverage. Final premium rates will be determined by the insurance company and are based on individual circumstances. As a result of underwriting, final premium rates may differ from quoted premium rates. Although QuickQuote strives for 100% quoting accuracy, occasional quoting errors may occur.
QuickQuote Financial, Inc. is a licensed independent broker operating in all 50 states and the District of Columbia. We represent our customers and are contracted to market the insurance products of several different insurance companies. QuickQuote Financial, Inc. does not contract with outside agents or brokers. Your insurance application process will be handled by employees of QuickQuote Financial, Inc..
We charge no fees to our customers for our services. We are compensated directly by the insurance companies we contract with in the form of policy commissions. When you purchase a policy through QuickQuote Financial, Inc., the insurance company pays us a commission, depending on the contractual agreement in place. QuickQuote Financial, Inc. may also receive periodic bonus payments from insurance companies based on specified volume levels.
QuickQuote Financial, Inc. is completely impartial when it comes to helping customers select an insurance company. We do not direct customers to specific companies for purposes of increased compensation. Customers are able to select the company of their choice from our Web site marketplace. As a customer, if you require assistance with your specific company selection, our team of Licensed Insurance Professionals will help you find the company and product that best meets your individual needs. |
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Gary Spicuzza, *SAFE
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No Rights Reserved.
*Self Appointed Financial Expert |
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GarySpicuzza
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| Posted: Fri Jan 30, 2009 5:24 pm Post subject: |
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| Does that also apply to car insurance. when companies like progressive sells without an agent and they sell direct. |
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TLE
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