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.
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 fact of the matter is if agents are eliminated, the consumer will have no one to advocate for them.
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
While online quotes are nice, the reality is they aren’t all they’re cut out to be.
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.
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:
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.
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.