PIA Connection Online

by Mark Suhr

In an age where technology dominates headlines and automation promises to simplify every decision, one truth remains constant: insurance is not a commodity — it’s a relationship.

The role of the independent insurance agent has never been more vital. We don’t just quote prices or fill forms — we interpret, advise, and advocate. We listen to clients’ goals, understand their risks, and match them with the coverage that truly fits their needs. That’s not something an algorithm can do.

Yet, across several sectors of our industry — particularly property and casualty, crop insurance, Affordable Care Act health plans, and Medicare programs —there’s a concerning trend. Some carriers and managing entities have reduced or eliminated agent commissions on certain products. Whether intentional or not, this practice has consequences that reach far beyond an agent’s paycheck.

When agents are disincentivized or excluded from offering specific plans, consumers lose access to unbiased, professional guidance. That skews the marketplace and creates artificial winners and losers — not based on quality or service, but on who can afford to operate without human representation.

Federal programs like Health, Medicare, and crop insurance are complex. The average consumer cannot be expected to fully understand coverage differences or long-term implications without professional help. And when similar trends creep into property and casualty insurance, consumers face equal risk — buying coverage online that looks appealing but fails when it matters most.

When agents step back because compensation no longer justifies the time or liability involved, the consumer pays the price — in confusion, poor decisions, and unexpected financial loss.

Independent agents are the front line of transparency and fairness in the insurance marketplace. When compensation structures are used to manipulate distribution, it undermines competition and erodes consumer trust.

Professional agents help clients understand options, advocate through claims, and ensure that products sold actually meet needs. Reducing commissions doesn’t make insurance more affordable — it simply removes the expert guidance that keeps the system honest and effective.

PIA  advocates for agents and working to ensure that state insurance departments protect the role of agents in the insurance distribution process. We encourage all of our members to speak up – not just for ourselves but for the millions of Americans who rely on agents to navigate an increasingly complicated insurance world. We are not an expense – we are a safeguard. The agent role is vital for a healthy, competitive, and consumer-focused marketplace.