The world of insurance distribution has changed dramatically in recent years. Major trends have altered the distribution landscape dramatically and permanently, and insurers face significant challenges in adapting to these new realities.

Consumers have been avid users of the Internet, and they have learned to research and compare options before buying. Knowledgeable individuals rarely buy through any distribution channel without investigating similar products, especially on “big ticket” items such as insurance. More and more consumers do their own research on line, and then seek recommendations from friends, using social media sites or referral sources such as Angie’s list, Yelp, and TripAdvisor.

In reaching these consumers, insurers have primarily been dependent upon an agent/broker distribution model that is increasingly challenged to connect with, let alone meet, changing consumer expectations. The “experience” model for insurance sales is under increasing stress, and insurers have come to the realization that more efficient methods for recruiting and developing agents and brokers are essential --not only to increase sales but to lower operating costs. The limits of current distribution models-- and their inability to keep up with rapid demographic, social and technological change – have become all too evident.