With the passage of numerous new insurance regulations upon the industry and increasing diffuclty in adhering to new regulations, agents and brokers are feeling the pocketbook pinch.
In health insurance specifically, commissions have taken a huge hit with the passage of the Affordable Care Act and its medical loss ratio rules taking effect in 2011. The property and casualty industry hasn't exactly set the sales commission world on fire lately either with the current economic downturn still persisting.
Given the status of the industry and its increasing regulation and complexity of markets and products; agents and brokers need to strategize differently. To identify new streams of revenue individuals need to carefully analyze their own expertise and interests and seek out others for unbiased assessments.
Beyond simply assessing your own expertise and interests and getting outside opinions, individuals also need to do a bit of forecasting. In five years where will the heal insurance sector be? If the ACA stays in effect that answer is far different than if its thrown out and ultimately ruled unconstitutional. The point is though, individual agents and brokers should plkan ahead to consider their futures in those two disparate industry landscapes.
Likewise, where will the property and casualty or life insurance industries be? Its difficult to say but perhaps those are just a bit less volatile than the health sector right now and might be easier to assess. Alternative revenue streams for P&C agents can be as simple as lookjing into selling boat, motorcycle or other insurance as a supplement. Life agents may look to long-term care sales options given the baby-boom retirement explosion.
In any field, to achieve lasting success, you simply have to think ahead of your peers and rivals. So what's the next step?