NEW YORK — In the face of new technology and insurers offering coverage to customers direct, insurance agents face challenges, but the threat from this new reality is to the agents' traditional business model, not necessarily to their existence.

Speaking at the 23rd annual Executive Conference earlier this month, hosted by Ernst & Young and Summit Business Media, Dennis Sullivan, chairman and CEO of the Robert E. Nolan Company — a consulting firm that helps improve quality, service, and productivity for financial services organizations – said the traditional agent model faces many obstacles. There is not just more competition, he says, but smarter competition — and not only from other agencies. Carriers, Sullivan said, are becoming smarter about how they think about product distribution.

The role of the agent, therefore, is changing to that of a trusted advisor rather than just a seller of products. Sullivan provided an example in his own family. His daughter was shopping for her first auto-insurance policy, and she obtained quotes online from a variety of companies. But she had questions about the coverages she needed. Liberty Mutual, on its website, offered a “click to chat” feature, and through it, Sullivan's daughter was able to interact with an agent. She ended up buying coverage through the agent because of the advice and expertise the agent offered, even though Liberty did not provide the cheapest quote.