Geico and other carriers are going direct bypassing MGA’s and agents!
The elephant is in the room. Are you ready to take them on? If not, you and your business are in trouble!
Let us face it. This process is called ‘ Disintermediation’. This has been happening in the industry for a long time but now it is happening faster than before. Why???? Technology has changed it all. The search engines optimization is now allowing your customers sitting right next to you in Paris, Texas to connect directly with a customer support representative in Hartford, CT because the carrier is visible on Google and you are NOT! Given that the Elephant (The carriers cost 30% less than Agent/MGA your customer has a strong incentive to go direct!
We are seeing more and more companies going direct and taking over what was traditionally agent – MGA market. By doing this they are cutting out both the Retail agent and MGA. At Vantage Agora (VA) we provide back office, IT and consulting services to all companies in the Insurance supply chain from carriers to agents and we see this trend happening faster in the last two years and it is bound to increase.
Is there a way out? Yes! We work with several agencies and MGAs that are growing quickly EVEN in the SAME MARKET! How do they do this?
The answers are listed below:
1.They employ companies like ours to help improve their back office efficiency.
2.Let us face it we are in an aging industry. Our industry has operations people with an average age of 36+ years. Step 1 I suggest (of bringing in companies like VA) have freed up VA customers to put these highly experienced and trained operations people to help improve customer support. This is one thing the carriers can NEVER DO. Provide personal touch to your customer. This is why your customers have been with you so long. Provide more of that and don’t have your best people sitting in the back room.
3.Finally, please get good help to bring your website to be searchable in Google! Please see my blog http://harshaontheweb.blogspot.com. The big companies are able to get to your customer because YOUR customers’ buying patterns have changed! Every customer of yours searches the web before calling you! To counter this you have to be seen on the Google search page too!
Please feel free to contact me or anyone of our partners at Vantage Agora if you want help in this any one of the three steps I have listed. We will be glad to help. http://www.vantageagora.com/contactus
About Vantage Agora:
Vantage Agora (VA) is a global provider of back-office solutions, custom IT services and consulting services for companies in the insurance, finance, and healthcare sectors. As a SAS70 Type II audited company, Vantage Agora utilizes advanced data processing and quality control systems on a secured network to ensure efficient, comprehensive management of back-office functions such as payroll, accounting, financial and administrative tasks. Founded in 2004,Vantage Agora has offices in Cleveland and Dallas.