In the current broker/client business model local relationships are clearly preferred. However, that does not take into account the new health care landscape. Consider the advent of insurance exchanges. If Massachusetts is an example, a state’s exchange could gain a 30% market share in 3-4 years. So the client may purchase a health plan online without a local broker; the broker won’t necessarily be the only access point for products. So the question becomes, what is the role of the local broker in the future? And will most be able to evolve to fill that role?
And for those of you thinking that client loyalty will save the day, just ask travel agents now that 90%+ of all travel is booked directly or thru a website without the assistance of a travel agent. On the other hand, clients will always need a strategic advisor. Will that always need to be provided locally? If it’s about expertise and guidance, does it matter where the advice emanates from?
