What Does the Future Hold for the Traditional Life Insurance Agent?
We live in an age where technology is king and where generations are growing up relying more on computers than on personal interaction; how does this change the role of the traditional life insurance agent?
For years people were used to dealing with insurance agents face to face in their home; that is still the way that many older people feel more comfortable doing business. But as we see older generations disappear the expectations of people buying insurance are changing.
Who was the insurance agent we were used to?
The old school insurance agents were, and still are on some occasions, the people who called at your door to sell you insurance. They would come in and sit at your table to discuss their policies with you. After agreeing on a policy to suit they would take out a pen for you to sign a contract. Although these agents are still in existence the time is not far away where complete change will be necessary.
What changes will happen?
Many insurance agents are already adapting there role to keep up with customer requirements. They are remodelling themselves as financial advisors as opposed to just staying with the insurance role.
They still advise people on their options with regards to insurance policies but they do so within the context of wider financial advice such as investment opportunities. Since the financial difficulties that were brought about by the global financial dip people are keen to get advice on how best to make the most of the money that they have.
There is also a growing trend for insurance agents to make increased use of the Internet. Many people will look for life insurance options by searching online so having a presence there makes good business sense. The Internet is today’s version of the kitchen table where discussions can be held as to what is the best life insurance solution for the customer. It also gives the insurance agent the opportunity to provide a wider range of services than going door to door would.
Overall the progression of time has seen the role of the traditional life insurance agent change for the better; the service they provide is wider and is easier to access by all. Details of the service are also available to view 24/7; this wasn’t the case prior to the increased use of technology. The fact that face to face interaction is diminishing does not take away the personal level of service, it just makes it available to more people through the global shop window that is the Internet.
As time progresses further so the role of traditional life insurance agent is likely to change completely as we lose the generations of people who are uncomfortable online and prefer speaking to someone face to face. The older generations of tomorrow will expect insurance policy advice to be just a click away whenever they need it; they will not expect to have to wait until the next time the man comes around.
James is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.
This is really insightful. I think it is right on the money. My father was an older generation life insurance salesman. He literally sold life insurance at the kitchen table. When I came into the business I started that way, but after a number years I saw the writing on the wall (or on the computer screen) about where interaction was headed. For the past 15 years I literally have met only a handful of my clients! The rest are people with whom I have formed relationships online and on the phone. Until his dying day my father just couldn’t believe life insurance could be sold that way.
You make an interesting point about how personal service can still be delivered online. I have realized that people prioritize availability. As long as they can get a hold of you pretty quickly, they don’t have to see you. What’s nice about that is it allows you to be mobile and still take care of people.