Agents Should Focus On Roles In Changing Industry

He said, however, that agents who are tremendous salespeople are likely underpaid for that service, and are valuable.

The role of agents as advisers must also be further developed, analysts said. Kimberly Harris-Ferrante, a vice president and distinguished analyst at Gartner Research, recounted that after speaking with her agent after life changing events, such as having a child, the agent never brought up the need for financial planning or additional insurance products.

Agents, she said, should ask questions and have conversations with clients about life events and life stage planning.

Mr. Josefowicz asked carriers to consider, "What are you paying agents to do?"

He said focus needs to be on what information technology today allows carriers to do with the agent channel.

Mr. Josefowicz said carriers are "future proofing" their companies, inquiring about agent portals but also looking into direct capabilities. While they recognize the value in offering products directly, he said, they also have a fear of alienating their agents.

At the same time, he noted that carriers must understand that agents have expectations on how they interact with a carrier just as consumers have expectations. "Customer service toward the agent is important," he said, adding that carriers should focus on taking the "friction out of transactions."

"Agents prefer to be using their time to sell," he said.

Craig Weber, senior vice president within Celent's insurance practice focused on insurance distribution, underwriting, and service, and said agents are feeling a squeeze today as carriers ask agents to increasingly take on traditional back office tasks.

Carriers, he said, should instead do a better job in helping agents fulfill their proper role, which he said is acting as an interface to the insurance company and to the products.