Do I really need an insurance agent?


The insurance industry is the king of advertising – and I’m sure you’ve seen some of the ads encouraging you to boot your friendly insurance agent to the curb in favor of saving money through online self service.  Let’s dig a little deeper – I think you’ll be interested in what value an insurance agent actually can be.

First off – broadly speaking – where do the premium dollars you pay go?  About sixty-five percent of that money is paid out in claims for policy holders, the other thirty-five makes up what’s called the “Expense Ratio”.

Expense Ratio’s consist of all the costs of doing business.  Advertising, Salaries, Underwriting Costs, Buildings, and cost of sales – which could be in the form of commissions to agents (which generally run about 10%) or maintaining call centers and web sites.  

The interesting thing is that online companies run expense ratio’s that are very similar to companies with agents – there is no direct savings to eliminating the agent because they simply don’t account for enough of the cost.

How about value – what does an agent bring in that department?  Obviously, by having an agent instead of a call center you get more personal service.  With over 30 years in the insurance business Shylah and I can help you navigate the insurance landscape – without an agent you are committing to either spending time researching options or using the “that sounds good” strategy.

I think your time is valuable – and I think the things you’ve worked so hard for should be properly protected, now and in the future.   
Which is why we encourage you to complete an annual insurance review with us.  Because re-learning insurance lingo and getting up to speed on the changes every year is not the best use of your time either…

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