Why should you go through the time and hassle of getting your insurance producer’s license when everything is going to be done on the Internet in a few years? Because it isn’t.
The job of the insurance agent isn’t going anywhere, and, frankly, isn’t likely to change much, even in the face of technology. To better understand this, let’s look at the two flavors insurance comes in: the type that people buy and the type that people are sold.
Insurance that People Buy
People buy auto insurance because the state tells them they have to have it to get license plates for their vehicle. People buy home insurance because mortgage companies require homeowners insurance. In both these cases, people actively shop for insurance but the experience isn’t entirely the same.
While auto insurance policies have gone the way of tech, allowing purchasers to shop and buy online without even talking to an agent, insurance companies are having a terrible time figuring out how to offer the same sales experience for homeowners. Cars are commodities. There are only so many makes and models. But homes are different. Each home is unique in its construction, its location, its age, its upkeep or a combination of all of these things. Insurance agents are the “field underwriters” who examine and rate the differences. No computer or satellite photo can tell an underwriter just what condition a home is in.
This doesn’t mean that online sales don’t have their merits. Clients who purchased auto insurance online are prospects for homeowners insurance, making the agent's job simpler!
Insurance that People are Sold
On the other side of the insurance coin is insurance that is sold. This means selling to people who aren’t fulfilling an obligation, whether legal or otherwise, to buy life insurance or annuities. This is a complex sale given that it involves the use of a needs analysis, providing reasons and justification for the life insurance or annuity needed. Artificial intelligence and chatbots can help with the process, but they aren’t effective prospectors for new business. No one buys a product online that they don’t believe they need. Agents are needed to make the sale.
Factually, the bulk of insuretech, technology aimed at the insurance industry, is not aimed at the agent, but at other areas, mainly underwriting and claims. The agent’s job isn’t going anywhere soon, meaning good agents will always be needed and successful