“As far as going direct, it depends on the line of business.When you get into the more complex lines—at least on theproperty/casualty side—you don’t see [the direct channel], but forthe personal lines—particularly personal auto—there is definitelymore inclination to go direct.

I don’t foresee eliminating agents completely. We’ve done someGen Y surveys and one of the things we learned is that while Gen Ywants to research and investigate over the Web, when it comes topurchasing insurance they want to talk with somebody live.

I think there’s always going to be a need for the agent in somecapacity. If you are talking personal auto insurance and this is,say, the 10th year with no changes, you are probably more apt to godirect. But once you begin to have different needs in your life anddifferent needs for insurance, you are more apt to want to talk toan agent or broker.

On the commercial side I think it is completely different. Thereis much more of a need to have somebody professional—an experiencedbroker or agent—helping you with your insurance needs.

As for producers, they have some choice in what carriers they goto. We also surveyed some P&C producers and one of the thingsthey are most threatened by is insurance carriers going directly totheir customers.

Producers have choices in terms of the companies they want todeal with. We found that those producers who communicate the bestand feel they have the most input into the process—or are at leastasked for their opinion—are the producers that are most satisfiedwith their carrier and are more likely to place business with thatcarrier. There has to be a level of trust. There has to be goodcommunication between the two parties. That’s when you can have awin/win situation.”