Squeeze on independent agents tightens, with no end in sight

Article Abstract:

Independent insurance agents are increasingly coming under pressure from both insurance providers and consumers. Insurance companies are reducing commissions and delegating more work to be more cost-effective and competitive with the insurance carriers that are bypassing agents and selling insurance directly. Insurers are experimenting with multiple product distribution systems and combinations of direct and agent selling. Customers are demanding less expensive, higher-quality insurance products. Independent agents must pursue niche markets to compete with direct sales and must use high technology methods.

Industry Overview, Independent insurance agents

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Is optical scanning essential for an agency?

Article Abstract:

Electronic filing systems offer cost savings and convenience to insurance agencies through the use of optical scanners and electronic storage of images. The Rust, Ewing, Watt and Haney agency in Texas installed an entirely paperless system in 1994 that stores about 800 pieces of paper per day in an optical data storage box. Young and Perry Insurance in New Jersey has kept its paper files, but uses electronic indexing to make accessing them more efficient.

Prepackaged software, Optical Instrument and Lens Manufacturing, Optical instruments and lenses, Optical Scanners, Business Software Pkgs NEC, Usage, Column, Technology application, Scanning devices, Electronic filing systems, Filing systems, Rust, Ewing, Watt and Haney, Young and Perry Insurance

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Working the big picture

Article Abstract:

Insurance companies, insurance brokers and employers must address the costs of workers compensation insurance. Data from the National Safety Council indicates that the cost of workers compensation totalled nearly $120 billion in 1995. Data from a 1996 survey by Tillinghast-Towers Perrin and the Risk and Insurance Management Society showed that the average employer spent $2.03 in workers compensation cost for every $1,000 of revenue in 1995.

Direct Property and Casualty Insurance Carriers, Fire, marine, and casualty insurance, Workmen's Compensation Insurance, Economic aspects, Workers' compensation

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