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PIA Refutes McKinsey Study in National Underwriter Article

PIA has again challenged various assertions in a report by McKinsey & Co.’s Financial Services Practice, a consulting firm...
January 8, 2014

PIA has again challenged various assertions in a report by McKinsey & Co.’s Financial Services Practice, a consulting firm. An article in the National Underwriter looked at “Challenges and Opportunities for Agents and Brokers in 2014.” An excerpt:

Earlier this year [2013], a McKinsey study claimed the public doesn’t want to buy insurance through independent agents. But “when you examine these ‘studies,’ you will often find they are not based on original research, they are just opinion articles from consulting firms,” says Ted Besesparis, senior vice president, National Association of Professional Insurance Agents (PIA) and NU P&C advisory board member. “This most recent competitive effort to disadvantage the agency system and capture its profits will fail. Despite the wishes of our direct writer competitors, it comes down to what customers want: Customers want agents.”

The McKinsey report had proclaimed in a headline, “The End of an Era for the Local Insurance Agent.” In November, the National Underwriter published an extensive article (“PIA on McKinsey Report ‘Flawed Premise Wrapped in a Faulty Analysis’”) with PIA agents around the country commenting on the report.

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