The Rise and Fall of the Life Insurance Broker.
The Chinese were the first society to actively use a form of life insurance; however it wasn’t until the concept went overseas and hit the United States that it fully took life. It did not happen overnight, but life insurance slowly progressed into an important and necessary function of society. Here’s a brief history of how it came to be what it is today.
Needless to say, life insurance did not necessary explode the second it hit the market. And it’s fair to think so. Even today, it’s not necessarily the most anticipated or exciting expense in the world. But ever so slowly, the insurance companies influenced people to invest in their family’s future.
By the twentieth century, a wide portion of the public was looking to personally insure themselves and their family. Insurance providers were overwhelmed with the demand and had no choice but to turn away potential clients. The insurance companies responded by hiring brokers, personal assistants that could travel the country and meet with clients personally.
Insurance brokers started to spring up in every town. It was a good paying occupation and the majority of the public took a liking to these charismatic figures. Eventually the insurance broker became a well-respected and coveted job title, much like a doctor or lawyer.
The public loved the accessibility and friendliness of brokers. Insurance sales went through the roof. Customers and insurance companies alike loved what brokers were doing for their personal business.
An insurance broker would never pass up the opportunity to discuss life insurance with an interested person. They would highlight the advantages and obligations of each policy.
Insurance brokers became friends and experts in the field of insurance. Their training and advice spoke for itself. They were objective and willing to listen to a person’s concerns. It’s no surprise that brokers became the primary source for insurance.
Once a family finds a broker they like, there is a good chance they will continue to keep the same broker for years, if not decades. Why would you fix something that is not broken?
However, brokers have “broken down” in a small way. The internet is taking the insurance industry for good. It’s definitely the way of the future. Getting quotes and receiving insights and tips is much easier online than it is with a broker. Unfortunately these friendly little men and women are no longer needed like they use to. A lot of brokers are realizing that, and jumping ship to the internet where they can provide their insights there.
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