Can a computer sell auto and home insurance?

Of course; it happens every day! Can a computer provide insight into how much insurance a person should carry? If not already, I am sure it will be able to very soon. So where does the professional insurance agent fit into the picture?

I spoke with an agent recently and he said his agency will never be replaced because insurance is a relationship business and as long as he takes care of his customer he will have nothing to worry about. I asked him to expand on the "relationship" aspect of his agency. He said that all phone calls were answered live within a few rings; he said that his staff is well versed in servicing policies and all questions are answered quickly and correctly; he then added something that surprised me a bit. He said that a big part of his and his staff's  time is spent in answering the "what ifs" from his customers. Things like; "what if my daughter gets her drivers license, how much will it cost to add insurance on her?" or "what if I get in an accident, will my insurance go up?" or even this one "I had a minor accident, should I pay for it myself?" These are things that are mind-numbing to an agency but are an important feature in the relationship that the agent has with the customer.

We all know that the direct insurance writers can easily duplicate the services of insurance agents in most areas; they can answer the phone within a few rings, the staff people can be well versed in the coverage of an insurance policy, but are they willing to take on the tasks of advice and counsel?  If they are an employee of the direct writer, can they be expected to take on the role of customer advocate? Are these employees willing to go out on a limb and advise a customer that it may be in the best interest of the customer to pay this claim out of their own pocket? I don't think so. Why should they take the chance with a customer that they do not know or will probably never talk to again?

So, there is the secret sauce of the professional insurance agent. Taking care of the customer "what ifs." There are, of course, many other aspects of running an agency. Things like; completing annual policy reviews, visibility in the community and becoming an expert in specific areas of insurance.

Another interesting aspect of this is that advice and counsel is provided without cost to the customer. Of course the customers pay their insurance premiums but they would have to pay some company anyway, so why not pay a local agent and get someone that can help them?

Someone may come up with a business model that incorporates all aspects of an insurance agency that can be available to the masses. If and when that happens agents may be at risk, but in the meantime the future is pretty bright for agents.