A multitude of forces are causing many carriers to think of ways to disintermediate agencies.

Executive Summary

A multitude of forces are causing many carriers to think of ways to disintermediate agencies. But for carriers that want a true legacy of success, squeezing out the middle man is not the solution. Innovations that more accurately price the product and address client needs are key.

Health care reform is one. Some benefits carriers have cut commissions to 0 percent and agents are still writing with them. This fact must have caught the attention of at least a handful of P/C carriers, which are sure to be studying whether they too can find a way to cause agents to sell policies for free.

Affordable Care Act advertising is causing another branding change. One tag line that is getting much press and attention is, “When insurance companies compete, you get a better deal.” How does this work? By creating an electronic exchange.

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