There is no single model that will guarantee success for agents in an evolving P&C market where customers are lured, through developing technology, to direct writers, but agencies willing to adapt should still be able to define and reach target markets going forward.
A report released by McKinsey & Co., “Agents of the Future: The Evolution of Property & Casualty Insurance Distribution,” notes the changes over the past decade in personal lines auto insurance, which was once a profitable line of business for agents.
The report notes that the agency model for this line is increasingly under pressure as technology has allowed carriers to assume more responsibilities. Predictive models are limiting the risk-selection role agents once played and are calling into question “whether the agent plays any role at all in managing profitability—especially in personal lines auto.”
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