Future Competition

Young agents, while generally happy with their career choice, temper their optimism with doses of reality about what lies ahead in terms of competition. Who can blame them?

This issue of Insurance Journal features exclusive results from the 2015 Young Agents Survey, where more than 400 young agents nationwide chimed in to tell us their opinion on the insurance industry, their agency and how they feel about being an insurance agent. (see page 24 for the full report).

These young agents also shared their views on the future and most importantly their biggest competitors in the years to come.

Some young agents worry about the future with increasingly competitive online and direct sales channels.

“Online writing is the biggest competition and will continue to grow,” one young agent wrote. That is until the client has a claim. Then they find out they are uninsured for something. “Clients need an agent to help them insure what they are looking to insure.”

Some, but not many, reported having concerns over non-traditional firms like Google entering the insurance world.

“Google is a very real threat,” one young agent wrote. “I focus on commercial insurance, but the basic lines of coverage like BOPs are next. I think we’re many years away from the larger more technical risks, as it requires a very technical approach, but nothing is safe these days with the way technology is advancing.”

But one young agent noted that competition is good for the market and it’s good for the clients. “The entry of Google and the other non-traditional businesses in the P/C insurance business is something that could be good for the clients – the prices are going to be very competitive.”

This same agent had more concerns over the future of agents and brokers existing at all in the industry. “My biggest concern is that the agents/brokers in the future are going to disappear with non-traditional businesses getting into insurance.”

Another said: “Looking to the future, it’s worrisome to think of what will become of independent agents. With technology becoming so advanced, I am worried that future generations will not even consider having an agent.”

The most talked about area of concern for young agents responding to the 2015 Young Agents Survey was by far just good-old competition from other agents and brokers.

“Our biggest competition is other brokerage houses (Marsh, Aon, Willis, etc.),” one young agent said.

Bringing in the right young producers will be the key to growth and staying relevant in the years to come.