Changes in the Insurance Industry

Changes In The Insurance Industry

 Business & Insurance | Changes in the Insurance Industrt | The insurance industry has changed so much that most firms do not look like the company your parents did business with. From financial planning, to the hiring of CFPs, and financial advising, the traditional insurance companies have entered almost all of the financial arenas.

    No longer are the Prudential and State Farms of the world just doing insurance. That agent that came to see your parents on Friday afternoon, who talked frankly about life insurance, has been replaced and remodeled. Insurance companies have decided to offer more products and provide more hands on handling of one's finances. While Prudential allows certain registered representatives to sell stocks and bonds, State Farm has licensed agents that can transact mutual fund business. Both companies offer bank, securities, and mortgage products.

    Traditional insurance companies are in business of maintaining their client base and picking up new ones on the way. These companies have evolved their business focus, while keeping their conventional distribution channels intact, the insurance agents. What has changed so significantly, as to allow companies such as  State Farm to make successful waves, in new financial areas, which they have never done business before? It is simple. It is the marketing and the relationships their agents have built with their client base. The insurance businesses which have not teased us with their new financial products, but actively embraced them,  seem to be gaining further ground on their competition. Also in the favor of the Prudential and State Farms of the world is the friendship that develops between their agents and clients. In many cases, he trust factor allows for the possibility of more business to come the agents way.

 The world will never be the same. The old insurance companies have decided to be true leaders in the financial service arena. From the selling of stocks, mortgages, bonds and mutual funds, these companies are more full service orientated than before. Truly now we hope to see better service, because now banks and the insurance industry have a level playing field to perform.