Insurance producers face a unique challenge every day: satisfy the needs of three distinct parties–client, carrier, and agency.  Some agents feel their ultimate duty is to the insured, yet it’s important to remember the basis of the agency/insurer relationship.

The relationship between agent and client–based largely on knowledge and trust–is critical and even sacred.  However, agents rarely enter into contracts with policyholders outlining duties and consideration.  The desire to serve the client to the best of one’s ability is ever-present, but a contract and consideration are not.

Conversely, formal contracts are always in place between agency and carrier.  These contracts legally recognize the agency as a representative of the carrier, and they outline the duties and consideration required of each party.  Preservation of this contract, through continued emphasis on mutual growth and profitability, is of utmost importance, because it ensures the agency has a product to sell and the insurer has a partner to sell it.

This unique arrangement of relationships requires a challenging but necessary balance for agents:

* Counsel insureds ethically and knowledgeably

* Represent carriers with integrity and dedication to contract requirements

Thank you for striving to counsel clients and represent insurers every day!