Insurance agents focus on consumer protection

The Massachusetts Association of Insurance Agents is a trade association that represents over 1,000 independent insurance agencies across the commonwealth. These smalland medium-sized local businesses employ over 9,000 workers in well-paying jobs and contribute more than $1 billion annually to the Massachusetts economy.

The association is dedicated to strengthening and elevating the independent insurance agency system through advocacy, quality education, key insights and advice, market access and essential products. We do all of this — and more — for one simple reason: to provide unparalleled service to our customers. As independent agents, our members are solely focused on understanding your particular situation and providing you with the right product at the right price to meet your needs.

As we turn the calendar to 2023, our association is working hard to advocate for legislation and policies that ensure all insurance providers are focused on putting the best interests of the consumer first. We have identified two issues that are of particular importance:

First, as health care costs have soared and automobiles have become more technologically advanced and expensive, it has become increasingly clear that our state’s mandatory minimum auto liability limits have become obsolete.

In 1927, Massachusetts became the first state to require the purchase of auto liability insurance. While many states have recently modernized their limits, Massachusetts now ranks near the bottom nationally ($20,000/$40,000 for bodily injury or death and only $5,000 for physical damage). If an at-fault driver causes damage to multiple vehicles, you can see where $5,000 would not go very far. In even a minor accident, an ambulance trip alone can leave little left over for any resulting medical bills. This means the not-atfault party is on the hook for oftentimes overwhelming medical and repair expenses. Our agents recognize the limitations posed by the current statutory minimums and typically recommend higher limits to protect their customers. Many consumers who shop online, however, may focus only on a cheaper rate without understanding the implications. By raising these limits, we would better protect all consumers and ensure that well-informed insurance customers are no longer subsidizing the rest of the insurance-buying public.

The second issue of concern is a nationwide trend of companies attempting to lure in new customers with the promise of free technology, smart gadgets, and other rebates with only a tenuous relationship to auto or home insurance.

The commonwealth has long-established rules around such rebates because it is simply good public policy to ensure that insurance decisions are being made based upon coverage and price, not on which company or policy offers the most expensive gifts or giveaways. These inducements can change the calculus of insurance consumers and, in so doing, risk creating a pool of individuals and businesses with less than adequate coverage- exposing all of us in the process.

As the 2023-2024 legislative session begins in earnest, the association will continue to oppose attempts to loosen these rebating rules.

As a final point, there is perhaps no more important issue impacting the insurance consumer experience than the availability of welltrained agents and other insurance professionals. Like nearly every other industry, our member agencies currently have or anticipate staff openings and are looking to hire new talent. If you like the idea of working in a local industry that looks out for the customers it serves, then we would invite you to consider a career within the independent agency community.

A career in insurance comes with attractive compensation and benefits that enable our employees thrive and grow. Our industry also offers advancement opportunities. Entry-level agency employees can pursue training and professional designations that pave the way for continuous advancement — with or without a college degree. Insurance agencies also offers work-life balance, with a schedule that can accommodate vacation time, travel, and family needs. Perhaps most importantly, insurance allows you the opportunity to make a real difference in people’s lives by helping them rebuild when they suffer a loss.

As we look ahead to 2023, MAIA remains committed to fighting for our agencies and their customers. We will continue to identify the issues and challenges they face and advocate for policy solutions that make a meaningful difference in their businesses and daily lives. If you are interested in learning more about a career in insurance, or otherwise joining us in this effort, visit maia.career website.com

Nick Fyntrilakis is president and CEO of the Massachusetts Association of Insurance Agents. To learn more about the association, go online to mass agent.com

Moriarty

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Consumers and businesses in Western Massachusetts and Northern Connecticut have always responded and adapted to address the economic conditions at hand.

I share here some of my views on the economy.

• Inflation: It’s no surprise that inflation is a top of the mind concern. At its basic definition, “inflation is a progressive increase in the price of goods and services within the economy.” Which means as inflation rises, it lowers your ability to buy more things. Whether you believe inflation is good or bad, it is an inevitable part of the economy. Although moderate inflation is a sure sign of a healthy economy, we’ve already seen the negative impact of higher inflation early in 2023 as payment for necessities such as groceries and utility bills has been strained.

In January 2022, inflation was at 7.5% and rose to a 40year high of 9.1% in July 2022, it then decreased to 6.5% by December 2022. With 2022’s trends in mind, I anticipate seeing a continued increase in consumer credit utilization and decreases in personal savings rates and spending in the face of cooling inflation pressures. I’m cautiously optimistic inflation will retreat toward the 2% to 3% level by the year end 2023.

• Employment: Well, with what we will all remember from the “Great Resignation” of 2020-2022, to today’s candidate ghosting and robust applicant demands, the fears of a recession may change the tide toward employers.

Albeit recent job reports in January were contradictory. America added 517,000 jobs last month despite the consensus estimate among economists that the U.S. economy was likely to add 185,000. As far as the unemployment rate at 3.4%, its lowest since 1969, the Fed is committed to raising interest rates to cool things off, which may lead to layoffs. Some say and most employers hope (although hope is not a strategy) that recent wage increases, hybrid work schedules, and other flexible concessions will continue to help employers attract and retain a capable workforce.

For employers, 2023 presents an opportunity to train and retain their workforce, while remaining flexible to adapt to the economic conditions ahead. For employees and candidates, this could be a time to reflect on the improved working conditions