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It’s been four years since McKinsey & Company published their infamous, Agency of the Future study proclaiming the death of local insurance agents. Download a copy of the Agency of the Future report here.
In this episode of Agency Nation Radio, Ryan and Marty take a look at what McKinsey got wrong and maybe more importantly, what they got right.
In particular, they focus on the five economic realities McKinsey predicted would have downward pressure on local insurance agents over the next five to ten years:
- Most personal lines and small commercial customers will interact with their agents and carriers across the full range of channels: in-person, through mobile devices, and by phone, Internet and video conference.
- Carriers will continue to use technology to increase their direct interaction with the primary customer, delivering more consistent service at a lower cost.
- Agents will be compensated only for the unique value they deliver to the customer and the carrier.
- Carrier agent management models in both the independent (IA) and exclusive (EA) channels will focus resources on those agents that deliver profitable business.
- Winning agents will deliver tailored and relevant expertise and excel at multi-channel marketing, while increasing their scale and operational efficiency.
These predictions were made over four years ago. The scary part is, they weren’t far off from what local Trusted Choice insurance agents are facing in the marketplace every day.
So we asked the question:
Is it time to adjust our value proposition from “Your Local Agent” to “The Right Agent?”
…and if so, what exactly does that mean?
Let us know your thoughts in the comments below…
image credit: Ben White