Take the Challenge

I’m astounded by the lack of response by independent agents to the significant increase in competition for their clients. Not responding is a mistake. The competition is growing daily and it is no longer isolated to personal auto insurance or even just personal lines. This new competition is after small-to-medium commercial accounts as well as personal insurance. Only the larger, more sophisticated commercial clients are currently beyond their grasp.

You need to take these competitors seriously. They are well funded, heavily invested in technology, provide ease of doing business and use psychological marketing techniques to blame the inflated cost of insurance on useless agents and profit-hungry traditional carriers.

Consumers don’t need an agent. Their services are overrated and they are hard to reach. They only add cost to the transaction in the form of commissions and they work traditional banker’s hours. Once they write your coverage you never hear from them again other than a renewal policy and bill. This is what they say.

The competition is available 24/7. They’ve replaced hard to reach agents with a bot. An automated, artificial intelligence program available anytime to answer your questions and provide advice. Those that don’t offer a bot have automated coverage information sources available. Some even have a live chat feature.  Once they’ve answered your questions you can buy low-cost coverage through an automated system when it’s convenient for you. Lemonade even goes on to laud their philanthropic nature through a unique peer to peer arrangement that supposedly will donate to charity all profits over expenses. What consumer wouldn’t be impressed with that?

How long will the competition be allowed to go unchallenged? Maybe independent agents can’t match the competition’s speed and relative ease in transacting business but we all know that won’t mean a damn if consumers aren’t properly protected or able to have an ally when it comes to a claim. We need to educate consumers to look beyond the hype at what they are really buying. The competition is marketing slick packaging and delivery at the expense of professional knowledge and proper protection.

What I don’t understand is why I am not seeing most independent agents flooding consumers with warning messages about proper coverage and claims advocacy. Have agents just gotten lazy or forgot how to promote the legitimate and important benefits they provide? Have you given up? Are you biding your time until you can sell your agency and leave the problems to someone else?

Marketing against these competitors isn’t rocket science. It only takes a real commitment to reach out and bring the issues to the attention of the buying public. Storytelling is a great way to educate. It forces the reader to visualize the issue and makes it easy for them to see themselves as the victim. Short, simple and sincere stories that highlight the real dangers of buying protection without the advice of an agent will get their attention.

Most individuals, families and businesses want to be properly protected. They worked hard for the things they have and they don’t want to lose them. Make a commitment to get the truth out about buying insurance. When consumers start to see more and more warnings to be cautious and aware it will get them to ask questions. Knowledge is power and an educated consumer will ask questions and hopefully will see through the competition.

I hope you’ll make a commitment this year to marketing to consumers the pitfalls of doing business without a professional agent. We need everyone in the independent agency system to carry that message. We need to create caution and concern in the buying public’s mind about doing business direct. I hate to think of what might happen if we don’t mount a campaign like this.

Count me in. I’m willing to do whatever I can to assist any agency willing to mount a campaign like this. I’m sure I can find some others willing to help as well. It’s all up to you now!