Mergers and consolidation in the financial services sector is a constant. Given the continuous insurance rate increases over the past 26 quarters the valuations for agencies has been at an all time high.
In addition, both banking and insurance are among the most regulated business in this country so the insurance commissioner and regulations should mitigate any disruption. Branding takes time and as noted, often phased in over years to minimize disruption and loss of market due to name recognition. Most insurance buyers have difficulty distinguishing between the sales force (agent/broker) and the actual insurer, never mind the technical coverage, pricing and other elements that matter. Most of us just want covered claims paid when presented, or defended and indemnified if needed.
Our local bank in CT was bought and sold five times in the past 25-years, with little to no disruption and essentially seamless to customers other than a new logo and usually updated systems. I can’t remember when I actually had to step into a bank branch as everything is online, to include deposits, ACH/ETF, etc. The same thing recently occurred with a 3rd generation private insurance agency. The family wanted to monetize their generational investment and they were acquired by a large national firm. Better systems, more leverage with insurers, professional management, etc. It’s a process the clock turns, and the cycle resets.
Change is constant so I focus on learning how to adapt, enjoying the improvements and save time. I long ago gave up carbon paper, telex's, fax’s, paper receipts, hardwired telephones, and now embrace touch-less financial transactions. Rather we increasingly have direct contact with insurance, and investment firms via ZOOM, Teams and other platforms which is the new normal since COVID.
In addition, artificial intelligence (AI) tools continue to transform most financial sectors to include insurance, investing and banking. I suggest we all consider becoming conversant with ChatGBT, CoPilot and other more specialized tools to help inform and make decisions.
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