Driven by intense pressure from digitally focused competitors, the WSJ reported State Farm is replacing its contracts for 19,000 independent sales agents. The new contract has deep commission cuts, eliminates health insurance, and requires AI adoption by 2027. The agents can sign or exit the company. I wonder if other captive insurance companies will take similar actions. “Like a good neighbor… under new terms and conditions”

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AI is here to stay. Live with it, learn it.

Wow

What? No health insurance? That would send me packing.

Agents are actually seen as a drag on the bottom line. They have staff they have to support and all of that expense comes out of your premium dollar. Auto and Homeowners can be sold over the phone, so the "servicing the policy" stance the agents have always presented is not being heard anymore. The captive agent concept has it roots in the founder of SF, himself a SF Agent. Lovely concept, but those bucks used to pay agents commissions are under daily review. Sorry guys, but the times are changing. SF got away from Flood and Canada, and agency I am afraid is next.

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