Next Generation: The “quiet revolution” in insurance distribution that’s affecting producers

During the month of October, Insurance Business America’s Next Generation series will focus on technological advances changing the shape of the industry’s future.

The advent of technology in the insurance space has long been feared as a major disturber of the traditional agent/broker model. However, a new study from Swiss Re concludes that while technological advancements mean agents and brokers will need to adjust their business models, it will not send them lining up at the unemployment office.

The study, “Digital Distribution in Insurance: A Quiet Revolution,” examines expansions in big data, sales, marketing and distribution strategies in multiple countries.  Kurt Karl, chief economist with Swiss Re, said that while the number of policies sold online is still small, it represents a significant shift in consumer behavior.

“A quiet revolution is underway,” Karl said. “The statistics on e-commerce insurance mask the profound impact new technologies are having on the distribution process.”… read more > “Next Generation: The “quiet revolution” in insurance distribution that’s affecting producers”

Next Generation: The "quiet revolution" in insurance distribution that's affecting producers

During the month of October, Insurance Business America’s Next Generation series will focus on technological advances changing the shape of the industry’s future.

The advent of technology in the insurance space has long been feared as a major disturber of the traditional agent/broker model. However, a new study from Swiss Re concludes that while technological advancements mean agents and brokers will need to adjust their business models, it will not send them lining up at the unemployment office.

The study, “Digital Distribution in Insurance: A Quiet Revolution,” examines expansions in big data, sales, marketing and distribution strategies in multiple countries.  Kurt Karl, chief economist with Swiss Re, said that while the number of policies sold online is still small, it represents a significant shift in consumer behavior.

“A quiet revolution is underway,” Karl said. “The statistics on e-commerce insurance mask the profound impact new technologies are having on the distribution process.”… read more > “Next Generation: The "quiet revolution" in insurance distribution that's affecting producers”

Obamacare to cause insurance exodus?

obamaThirty-three percent of survey respondents have admitted they are considering getting out of the health insurance business entirely because of Obamacare.

“I think the time of the independent agent may be coming to an end,” one of the respondents told McKinsey.

“I think there is going to be an exodus of agents over the next 5 years,” said another to the surveyors. “Folks will slowly retire or partner with larger firms.”

To add insult to injury, twenty-nine percent of independent insurance brokers claim their businesses have been hindered by Obamacare, according to a recent survey conducted by McKinsey & Co.

The survey was comprised of responses from over 1,000 independent brokers during Obamacare’s first ‘open enrollment’ period from October 2013 to April 2014.

An additional twenty-three percent of respondents said they are particularly worried about ‘premium stability’ for customers, while another sixteen percent mentioned issues relating to the long-term financial health or ‘sustainability’ of Obamacare.… read more > “Obamacare to cause insurance exodus?”