| Message |
Author |
|
 Posted: Mon Dec 28, 2009 6:40 am Post subject: How do the insurance agents differ from one another? |
|
|
I'm told that an agent has the responsibility to identify the needs of the prospect correctly and that all agents are not equally capable of doing that. I'd often wonder if it's due to their qualification or if it's due to different carrier agenda. How'd these agents actually differ from one another?
_________________
Register Now to have your Insurance queries solved. |
|
Darkwaters99
Guest
|
|
| Posted: Tue Dec 29, 2009 6:25 am Post subject: |
|
|
There are certain fiduciary duties that an agent needs to perform towards his clients. Agents are the initial point of interaction with their prospective clients and hence they'd need to analyze the nature of risks associated with clients. Once they'd obtain the financial data concerning a client, they'd need to hand it over to the underwriter to get the information processed.
Now, over here we'd need to understand that the risks concerning a client may vary depending on their insurance needs as also the the nature of coverage they're looking for. That's one reason, why their responsibilities will also vary from one another. |
|
steven
Senior member
Joined: 02 Feb 2006
Posts: 1553
215.65 Dollars($)
|
|
| Posted: Wed Dec 30, 2009 5:15 am Post subject: |
|
|
Hi,
| Quote: | | Agents are the initial point of interaction with their prospective clients and hence they'd need to analyze the nature of risks associated with clients. |
Yes, if the agent is not capable of analyzing the risk potential and fails to capture the needed information from the prospect, then it would be his obligation to meet the requirements in case the insured doesn't have the right coverage.
This is where the agents may vary from one another in terms of efficiency.
On the other hand, the burden would be on the insured if he hides material information from the agent and the underwriter. Roddick |
|
roddick
Senior member
Joined: 05 Oct 2005
Posts: 962
143.16 Dollars($)
|
|
| Posted: Thu Dec 31, 2009 3:11 am Post subject: |
|
|
But when you mention has the ability to identify the needs of the client, what exactly are we talking about?
The process of fact finding for an agent is very important, but it can also be extremely difficult. Knowing all the facts in a situation is rare, clients don't usually volunteer a lot of information, and sometimes agents don't ask all the questions they should.
If we are talking about overall ability to review financial facts that are important to a recommendation concerning someone's partaking in financial planning, what makes one agent different from another would be multifacted. Considerations like, process, experience, and overall knowledge matter. But how easily can these things be detected?
In the United States insurance agents alone are not fiduciaries, meaning they do not have a fiduciary responsibility to their clients. Would making them fiduciaries make them more financial responsible? Probably not. Should they try to act as much as a fiduciary as possible? Most definitely.
At the end of the day it'll most likely come down to style. If you ask this question in the pursuit of weeding out, or vetting certain people in a process to find your agent, that can be a tough process. |
|
BNTRS
Senior member
Joined: 05 Nov 2009
Posts: 824
12.54 Dollars($)
|
|
| Posted: Thu Dec 31, 2009 5:11 am Post subject: |
|
|
| Quote: | | Should they try to act as much as a fiduciary as possible? Most definitely. |
When it comes to fiduciary duties of an agent, I'm sure the clients would stick to a particular agent that offers the right policy and handles the insurance requirements carefully. A warm feeling of trust would make it easier for an agent to retain his clients. |
|
RupertWBradson
Senior member
Joined: 05 Jul 2007
Posts: 703
131.50 Dollars($)
|
|
| Posted: Sat Jan 02, 2010 6:27 am Post subject: |
|
|
Once an agent evaluates the risk potential associated with a prospective client, he might not recommend the right policy if he fears that the prospect would shop for a cheaper option. A good agent will not get scared to loose a client.
He'd rather explain each policy element and let the client analyze his own risk potential. This way the client will have the right explanation towards the cost of the policy. In doing so, the agent will be able to perform all his fiduciary duties and also have the right to his policy commission.
_________________
Insuranceguy.ampminsure.org |
|
Juanita
Moderator
Joined: 04 May 2007
Posts: 735
Location: Idaho
137.01 Dollars($)
|
|
| Posted: Mon Jan 04, 2010 9:54 am Post subject: |
|
|
| Any agent who's aiming to keep your premium down is not doing a favor to you if he's not asking you all the necessary questions. He might offer a cheaper coverage to you, but if the benefits don't go well with your risks then you'd be exposed to the replacement cost as well as attorney fees in the end. IMO, it's always better to pay for the right coverage and the right deductible than to suffer later on. |
|
JeremyHolter
Senior member
Joined: 06 Jun 2007
Posts: 1194
210.30 Dollars($)
|
|
| Posted: Tue Jan 05, 2010 7:35 am Post subject: |
|
|
Yes, as an agent you might come across situations wherein the prospective client may get irritated to answer all your queries. This happens when his own agent has made things easier by filling out applications on his behalf. As a result of such practices, the client isn't aware of things that he needs to know nor is he able to analyze his own risks.
If you're a responsible agent, you'd try your best to convey all the necessary information to your prospective client. Here lies your challenge to show him the right way and to get him the feeling that he's not wasting his time while analyzing his own risk potential. |
|
steven
Senior member
Joined: 02 Feb 2006
Posts: 1553
215.65 Dollars($)
|
|
| Posted: Fri Jan 08, 2010 6:24 am Post subject: |
|
|
Hi,
| Quote: | | Here lies your challenge to show him the right way and to get him the feeling that he's not wasting his time while analyzing his own risk potential. |
Once the client signs up, the carrier accepts his risk and has full control thereafter. The client should always know what he's paying and getting covered for. Later on when the client files a claim, the carrier might just investigate, deny or accept it. Roddick |
|
roddick
Senior member
Joined: 05 Oct 2005
Posts: 962
143.16 Dollars($)
|
|
