Reinventing life insurance agency distribution globally
April 9, 2019 by Insurance Forums Staff
Life insurers globally face multiple challenges and among the most critical is the sustainability of their agency distribution models.
After decades of limited innovation, distribution is on the cusp of major change, which will unlock benefits for all stakeholders, according to a recently released joint research report from Boston Consulting Group (BCG)and Morgan Stanley Research, Reinventing Life Insurance Agency Distribution Globally.
This report draws on more than 50 interviews with senior insurance executives; a survey of 850 agents in China, India, Germany, and the United States; and detailed proprietary financial modeling. It envisions a hybrid agency model in which agents, empowered by technology, are embedded in multichannel, and multisolution ecosystems focused on addressing customers’ holistic needs across their lifetimes.
Tim Calvert, a BCG partner and co-author of the report, says this transformation involves many challenges. Reinvigorating the agency requires significant amounts of innovation and investment in new capabilities to boost overall effectiveness, but agents have historically been resistant to change.