The world indeed could be ending, but independent insurance agents and brokers will remain forever. They take the hits and keep on writing business. The Internet, dotcoms, AI, research reports (e.g., Conning & Co.) or attack advertising (e.g., Geico) can’t keep agents down.
At the recent Applied Net conference in Las Vegas, attended by 4,400 of our closest friends, I witnessed something shocking. At least I was shocked. In the exhibit hall, here was a Geico booth, complete with a life-size gecko taking photos with excited independent agents. Or, more specifically, excited CSRs and processors, who are those hard-working professionals who place the vast majority of personal and small-commercial lines at their firms.
Why was Geico there? Turns out it’s appointing independent agents.
After years of deploying Warren Buffet’s money to bash agents with wise-cracking advertising spots (“It’s so easy a caveman could do it…”), it seems the carrier would like to have them after all.
Geico is joining other carriers that for decades have seen that independent agents and their local presence — what Geico calls “local offices” — are vital to grow personal lines market share.
Progressive knows this. It has surpassed Geico for #2 in private-passenger insurance premium. Now Progressive has its eyes on #1 State Farm. It could very well win.
So easy a caveman could do it? I don’t think so. People need guidance! Insurance isn’t nice-to-have protection. And it’s not a commodity. A minivan-driving soccer dad carpooling with six kids with a minimum-state-liability-limit policy in the glove box — because he saved 15% in 15 minutes with Geico — is not smart.
A significant percentage of insurance consumers have spoken, indirectly, to Geico: We appreciate and need an independent agent. We are not comfortable choosing coverage ourselves online or via a 1-800 number.
While it gives me pause to say, “Welcome to the club,” I’ll say it anyway. Welcome to the club, Geico!
Thought we’d never see the day.
Then again, perhaps we could have.
