Commoditization of insurance is a good thing if;

As an agent you: 1. Have a lean business with good profitability.  This puts you in a better position to handle market or government based price changes. 2. Understand customers pay you not companies.  Your customers write the check then the company writes a check to you.  Without their money the companies do not get money and you do not get money.  Who is the most important in this equation? 3.  Have a strong “win win” relationship with your customers.  This will give you the benefit of the doubt in certain situations and will create a longer relationship.  Longer relationship will typically be more profitable.  If your customer is loyal and believes they are more of a partner in your business who cares if it is a commodity you aren’t!

The math of lower rates:

The reality is that most families have a choice of at least 10 if not 20 insurance companies that are willing to provide the insurance for their vehicles and home.  So let’s assume you come up with 15.  At least 80% of people will qualify for a rate with all companies, this may not  be a rate you like so let’s say 8 of them are higher than where you are now.  That leaves 7 companies with a rate comparable to yours, maybe a little higher maybe the same maybe lower.  Now what?