In all probability, the insurance marketplace will encompass more change in the next decade than in all three previous decades combined. Fueled by information technology, change is accelerating indiscriminately, creating immense opportunity for some while leaving others to struggle for survival. With the Internet emerging as an economic force impacting all agency transactions, the playing field is being leveled and barriers to entry are breaking down. These conditions are causing an examination of the traditional insurance infrastructure and are revealing the weaknesses of an over-complicated industry. While the traditional infrastructure is perpetuated by an outdated and highly politicized regulatory environment, certain change is inevitable.
Capital is more widely available.
Insurance products are becoming simplified and, at the same time, differentiated to satisfy specific niches or requirements. Banks and securities firms, with their large customer bases, are insinuating themselves into the insurance industry. At the same time that niches are being formed to address special needs, networks are also being formed to aggregate premium and achieve leverage. The same as it has always been, and more. And that will mean different things to different agents.