According to the 2000 Agency Universe study released by Future One, there are more independent agents than ever, working for larger, but slightly fewer agencies. And they provide these benefits more clearly than competing distribution systems. The signs of vitality of the agency force include a stable local retail presence and market-share level. Furthermore, emerging technologies play to the strengths of independent agents. Internet activity reinforces the notion of comparison shopping, a trend that can only help the independent agency system.
Insurance carriers can play a key role in facilitating the growth of independent agents.
Agents should partner with carriers that focus on agency profitability, because carriers with this focus recognize that by helping their agencies grow profitably, they drive their own growth as well. All three can help agencies reduce expenses, spend more time on sales rather than service and improve the effectiveness of their producers and customer service representatives. Lower costs, more time to spend with prospective clients and better close rates are the goals agencies should seek to achieve through carrier programs. Emerging technologies and changing practices can increase agency profitability. Browser-based company interfaces can significantly reduce the time necessary to issue new business, to make policy changes and even to train staff on computer systems.