Why do insurance agents have such a bad rep?

Question

I'm looking into starting an insurance agencies in the next few months but I have been told that insurance people are just as hated as lawyers and car salesman. In my 29 yrs I don't remember hearing of insurance agents being so low on the totem pole of occupations. I know the laws are strict with insurance which supports the reputation but what has happenend to give them such bad names?

Answer 1

Some insurance agents lie and cheat. Captive agents contract with only company so that company does monitor them.    

The insurance commissioner monitors all agents.  Just find an agent that you trust and go with them.  

Answer 2

I don't know, but I really like my insurance agent.  She's very nice and always looking out for me.

Answer 3

It is simple because insurance companies contract to provide one thing and when the time comes to follow through with their end of the contract the renege and force people to either get an unfair amount now or wait years to attempt to get a fair amount after hiring an attorney.  It is the biggest scam perpetrated on the american public because our government and financial institutions force you to purchase insurance and do very little to regulate those greedy greedy money grubbing hounds who care so little about their insureds.  

Answer 4

First...Joseph has no idea what he's talking about because if you cut out the agent or the broker you save NOTHING.  Insurance is regulated and it costs the same no matter if you go direct or through an agent.

Secondly...some agents twist perfectly good products and sell them in an inappropriate situation.  I've seen where people have bought life insurance on a child in order to save for college.  They would have been better off stick the money in their mattress.  Cash value insurance products make sense and are perfectly good products despite the misinformation that mainstream media portrays.  BUT, agent misuse the products and therefore not only tarnish themselves but the very product they try to sell.

Case in point.  I called someone the other day and his 'friend' was trying to get him to put $4000/month (yes month) into a whole life insurance policy.  He has no kids and was only doing it for retirment saving purposes.

Dealing with honest people in ANY industry is the only way to go.

Answer 5

Hmmm. Interesting question. Like any professional occupation, there are some bad apple out there. And the turnover is so high, some insurance carriers have a tendency to "hire anyone."

Ed Harris

Great Reputation

http://www.ohioquotes.com

Answer 6

In every industry there are a couple bad apples that ruin the bunch...insurance reps get a bad reputation becuase of the odd nut job that gets into the industry and doesn't know what he's doing.  It also gets a bad rep from the shady companies that give bad or misleading advice because they don't fully understand the products (IE:  The Buy Term and Invest The Rest...it works sometimes, but not always and shouldn't be promoted as a one size fits all situations, same goes for the MLM type companies that will hire absolutely anyone off the street to sell to their friends and family without any experience in the industry).

Ultimately, people hate what they don't understand.....law is complicated and people don't understand it, so they hate lawyers.  Insurnace is a very complicated when it comes to taxation and whatnot, so people hate dealing with it.  Insurance is also a product that you never use or see the value in it until you actually need it and at that time if you don't have it you can't get it.   People that don't understand it start complaining about how crappy insurance is and how they got "screwed", rather than admitting that they screwed up and it was likely their own indecision or lack of proper planning that put them in this position.  Don't read this as me being bitter or anything, it's the truth about society....my dad was in the same situation...he had term insurance through work and didn't understand how it worked.  Now he is a recent cancer survivor (and now uninsurable), and he is forced to convert it to whole life when he retires at an astronomical premium becuase he's old or cancel it all together and have nothing to provide for the family if something happens.  He hates insurance companies becuase of this, but it's becuase he screwed up when he was younger and followed the advice of his boss, who knows nothing about how insurance works rather than seeking the advice from an insurance proffessional, so he takes the easy way out by blaming someone else to save his own pride.

These days regulations and compliance have made advisors a lot more accountable for what they do, so it's constantly weeding out the hacks and bad advisors.

Career wise, it's a very rewarding career in the long term.  It's a tough industry to make it in though.  I'm am very proud of the work that I do.  When someone is in desperate financial need or hardship, I'm the only one that can put food on the table for them.  If a husband dies, is the lawyer going to help pay the bills for the family?  Will their doctor going to make sure little Johnny can afford to go to college?  Will their banker going to tell the widow, 'Don't worry about the mortgage and car loan payments for a couple months so you can greive"?  No, no and no.  An insurance agent can deliver a benefit cheque that can do all of that.

Answer 7

I think it is all about personality. Some are excellent agents. Others... well, just aren't. As long as you give excellent service, you will build a great name for yourself, and a booming business.  

Answer 8

My opinion of insurance agents having bad reps relates to their selling techniques and conning people into buying unnecessary coverage and insurance policies based on fear and aggressive sales tactics. Also the fairly recent coverage of the problems that people incurred in the South after the hurricane has added to people's anger of insurance companies. Most insurance companies will do just about anything to either lower their payouts or find a reason not to pay for damages. ie flood plain, acts of God, etc. Many people think that just because they have 'replacement coverage' they are all set should their house be totally destroyed. WRONG!!  

Answer 9

because they have promised many a time to give a better deal,only to find,one could have done it better going alone,cutting out the middle man