Cardboard Insurance Agents

Cardboard. It’s utilitarian and boring. We need cardboard but can’t get too excited about it – unless it fails us and our stuff spills out all over the ground.

Too many insurance agents are like cardboard.

I work with banks and credit unions all over the US. I bet if you go to any insurance agent in the country and ask if they would like to insure the local bank, the answer would be an excited, “Yes!”

However, too many agents who insure banks seem to be like cardboard. Here is what one client said about the two agents he now does business with:

“Regarding the renewal process, I have no strong preference at this point about P&C needing to stay with (Agent A) or the bank specialty staying with (Agent B).  I really haven’t noticed much difference in service; quite frankly we get very little from both agencies unless there is a claim.

“Going back to our old agent at (Agent A), he was outstanding.  (He retired a few years ago.) If there were changes in coverage, he would go over it line by line with us and explain how we would be impacted.  Now we simply get this mailing and no other conversation.

“With very little value add from any of them, I suppose it just comes down to price and strength of the insurance carrier.”

I’d guess my average financial institution pays about $200,000 a year in premiums.  That’s about $24,000 in commissions. Agents that act like cardboard should expect to be put out with the trash.