Also, keep an eye on how regulations evolve. For example, it is quite possible that regulators will insist that all licensed agents must be able to sell any of the plans offered on the exchange – a move that would all but do away with the captive agent system for health care.
Looked at more broadly, though, the exchange system seems to us like a dagger pointed at the heart of the agency system. This isn’t unexpected. Indeed, it’s been a long time in coming. Insurance carriers have long wanted to be able to bypass the agent and sell directly to the consumer. The problem: Insurance isn’t canned tomatoes. It is sold, not bought. Few consumers wake up, go down to breakfast, and then buy insurance on their own. They buy it because they were solicited by an agent who showed them they needed it.
Will the mandate overcome the natural reservations Americans have about taking initiative to buy insurance? It’s too early to tell. But agencies that rely on medical insurance sales need to be quick on their feet, and be ready to position themselves as navigators and educational resources.
Ultimately, there’s no substitute for the agent/client relationship. It’s just going to take a while for policymakers to figure that out. In the meantime, hang on.
