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IIABNY > Jamie > Posts > McKinsey Predicts End of Local Insurance Agent!
August 19
McKinsey Predicts End of Local Insurance Agent!

I just read a recent McKinsey report entitled “Agents of the Future: The Evolution of Property & Casualty Insurance Distribution”.  I have to tell you it wasn’t good news. 

Independent agents are being overshadowed by insurance companies dealing directly with consumers. Consumers have been programmed via extraordinary amounts of advertising to see auto insurance as a commodity. They no longer appreciate the value an independent agent brings to the purchase of insurance, especially auto insurance. 

The truth is as independent agents you have been out spent and out hustled. For too long you have avoided advertising who you are and the unique value you bring to buying insurance. As individual insurance agencies you can’t match the finances of the insurance carriers who spend hundreds of millions of dollars each year. So how do you get your message out to consumers and get seen where those consumers go to buy insurance? 

The answer is the Trusted Choice® brand and Project CAP. You need to band together and promote the Trusted Choice® brand that communicates the value of buying insurance from an independent agent. The brand wasn’t meant to overshadow your agency and who you are, it was meant to identify you as part of a nationwide group of independent insurance agents that offer a unique value to their clients. That is the ability to offer your client insurance coverage customized to meet their specific needs from a choice of insurance companies backed up by personal service and professional assistance when a claim occurs. You notice I didn’t mention price? That’s because price shouldn’t be the first or only consideration in buying insurance protection.  Instead consumers need to weigh the competiveness of the price they are given against the value of the service being provided. 

To help you promote the brand, Trusted Choice® is offering to split the cost of your marketing efforts up to a $500 contribution on their part. We encourage each and every member to take advantage of the Trusted Choice® Marketing Reimbursement Program. 

Project CAP is the digital marketing piece of the Trusted Choice® brand. It will get independent agents recognized by consumers who go online and allow them to explore the prices offered by independent agent carriers and then pick an agency that meet certain criteria important to consumers. If you haven’t updated your profile you want to do so right away. Here are instructions on how to update your profile and a link to the actual Project CAP site. Although New York won’t go live with online quoting until the first quarter of 2014 consumers looking for New York agents are being directed to the site right now. Make sure they see your enhanced profile and have the opportunity to choose to contact your agency. 

It’s up to YOU now. If you choose not to support and promote the brand then you have chosen to take on the giants of the insurance industry all by yourself. If you choose not update your profile and be seen by consumers online then I wish you all the luck in the world in reaching out to the 75% of consumers who go online to research and explore buying insurance. The decision is yours and I hope you make the right one because the future of your agency is riding on it.​

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