Are Insurance Agents Really Necessary in 2026?

Back in 2013, I wrote this article about whether insurance agents are really necessary in today’s world. I updated it again in 2022, but I feel the need to look at it again for 2026, as the industry continues to change.

I’d like to tell you where I think the future of insurance agents is headed.

Internet Domination

We already know the insurance industry has started diving into the online space. You have online insurance quotes, chatbots, and can purchase an insurance policy without ever speaking to a human being.

That leaves us wondering: Are insurance agents really necessary?

Here is the real dilemma. Insurance companies and consumers are always searching for ways to save money. In their eyes, agents can seem like an unnecessary expense.

Why should the insurance company give up commission to an agent if the consumer can get a quote online?

Why would a consumer need an agent when everything they need is right there on the web?

To both parties, cutting out agents can seem like a cost-effective idea.

The Problem with Removing the Agent from the Process  

The fact of the matter is if agents are eliminated, the consumer will have no one to advocate for them.

• Who do they talk to about insurance questions?
• How do they know they have the right kind of insurance?
• What happens when premiums increase and they can no longer afford their policy?
• What if a claim is denied?
• Who helps the beneficiary make changes as life changes?

The answer to all of these questions is the same: An agent!

An agent isn’t just a sales rep—an agent is the beneficiary’s partner. An agent makes sure the consumer has the right coverage, the right policy terms, and the right price.

The agent takes time to understand what the consumer needs and matches them with the right insurance company.

Beyond that, an agent gives that personal touch no online or digital experience can. Someone who is an expert in their field and wants the best for their clients can mean more than a cost savings to someone whose world continues to get smaller. In a world where 1 in 4 seniors are socially isolated, a connection with an insurance agent can make all the difference.

Related: 5 Simple Ways to Support Isolated, Lonely Clients

The Limitations of Online Quotes  

While online quotes are nice, the reality is they aren’t all they’re cut out to be.

• The price consumers pay online is often the same or higher than what they get through an agent.
• Insurance companies offer a limited number of products through online quote systems, while agents can shop all available carriers in their brokerage.
• Consumers often think they are getting the right coverage online but find themselves without coverage when making a claim.

Not only is Medicare confusing to virtually everyone who is not licensed, the sheer number of options, quote engines, and products can be overwhelming. The cost does not go up when you work with an agent, the service does.

What About Human Interaction?

When was the last time you kept pressing 0 trying to get to a human being?

The most important part of this whole equation is humans like to deal with humans! You will find most consumers want to interact with another human when making an important purchase. Making a huge financial decision that impacts the rest of your retirement? I think people want to make that decision with the help of another person.

Agents Are Here to Stay

I don't see insurance agents going anywhere anytime soon. Agents remain relevant to both insurance companies and consumers.

They make a huge difference for both sides:

• Agents help clients choose the plans that fit their needs.
• Agents are aware of product trends, pricing, and provide ongoing customer service and engagement.
• Independent agents shop several companies and come back with the best prices.
• Agents can assess and assist with consumer risk management.
• Insurance agents can look at unique situations and come up with the appropriate coverage options.
• Agents help with customer service and claims.
• Agents offer a range of products to adapt as consumer needs change.

If you are an independent agent, you can probably name a dozen other things you do for your clients that an online quoting system could never do.

You know the value you offer to your clients. Never let an insurance company or an uninformed consumer tell you otherwise.

Conclusion

Insurance is changing rapidly. When I first got into the industry, I never saw a world where we didn’t knock on doors and do the kitchen table close. Now, here we are in offices meeting on Zoom and Teams. But one thing remains constant: That person-to-person interaction. The value you provide cannot be replicated by the digital world.

Now is the time to look at expanding your products and services. Branching out to offer more products that will serve new clients and further enhance customer service.

People don’t want five different agents for each type of insurance they have. If you can be a full-service agent, that’s just one more way to make sure your job is secure.

Look for a field marketing organization that offers the best deal for you, as an agent, and for your clients. I know of a great one: New Horizons Insurance Marketing. Contact us to learn more.

💬 Tell us in the comments: where do you think the future of insurance agents is headed?