I interviewed a CIO for an article a couple of weeks ago and asked him if he felt channel management would be an important issue five years from now.

Industry observers have been discussing the demise of the independent agency system for two decades, yet it still stands strong—although the number of agents today is certainly below the level of a decade ago.

But people who have seen all the changes that have taken place in the last decade still have no idea what the agency channel will look like in five years, a time period that seems more like the day after tomorrow than half a decade away, considering the pace of change in the industry.

I'm not about to predict for you what will happen to agencies in 2016 because it would simply be conjecture.

I do know that unless someone creates a smart pill that automatically helps consumers understand some of the more complicated questions they have about policy coverages and such, agents have a good, long future ahead of them.

I do believe, though, that for agents to succeed in the next decade they will need more than a smile on their face and a a lot of charm. The ability to do research and shop online is likely the biggest change in consumer shopping that any of us have ever seen. Shoppers have access to as much information today as the people trying to sell those products and this often leads to this question: Why should I be paying some agents commission when I know as much about what is being sold to me as the person doing the selling.

Another person I interviewed, Nort Salz of Deep Customer Connections, pointed out that gaining access to quotes instantly for the more complicated commercial insurance policies is not rocket science. Consumers demand it in personal lines today. Consumers who also own businesses know that their commercial needs are quite a bit different than their personal needs, but eventually business owners will have to be satisfied that insurers and agents are meeting their needs.

I'm quite certain there are insurance agents out of work today who 10 years ago felt consumers would always come to them for their personal auto insurance. Things have changed drastically from a decade ago so agents can no longer afford to look 10 years out. People need to keep their eye out for what will change in the next five years and be ready to react and adapt to it. Agility is not just for carriers anymore.

Special Reports /

Five Years Out, Where Will Channel Management Turn This Time?

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