What’s It Going To Take?

With 40+ years in the insurance business, all of it on the independent agency side, I just don’t understand what the problem seems to be.

Maybe it’s professional arrogance. A sense of smugness brought on by significant knowledge and a desire to return to the days when independent agencies generated stable and significant income.

It could be agents have started to believe all the hype that protection should be bought based on price and convenience. There are billions of dollars being spent to predicate that myth and it’s very possible some agents have decided not to fight but to instead get into the price wars. There have always been some independent agents who sold that way and their numbers may be growing. Don’t get me wrong—price is a factor in buying protection, but not the only or primary factor.

Maybe it’s “deer in the headlights” syndrome. There is so much talk about Insuretech and the need to make buying protection more convenient and less costly, that agents are on overload with the whole situation and end up doing nothing. The competition seems overwhelming, and even their own carriers with whom they have had relationships for years are trying to push them out of the market.

I don’t know what it is but my question is a very simple one. Why the hell are independent agents not taking every opportunity to change the public’s perceptions about buying on price and convenience?

The ability to communicate with clients and prospects is at an all-time high. Technology has made it so that just one person can have a significant voice and impact on large groups of people. With emails, websites, blogs, and social media, as well as all the older traditional methods of communicating, it’s really easy to reach a significant number of people and provide them with an important message.

That important message is that it’s crazy to risk your, your family’s and your business’s financial security and well-being on conveniently saving a few dollars. The average consumer, personal or business, does not have the necessary knowledge to know what coverage they should consider buying as well as how various insurance contracts differ. That is why they need a trusted, independent insurance agent to represent them and help protect their interests.

I realize that my last statement probably makes our E&O attorneys crazy as it possibly takes away the protections provided under Murphy v. Kuhn. That’s unfortunate but let’s be candid: most independent agents are professionals and not order-takers. They and their staff spend countless hours and thousands of dollars learning coverage and complying with CE. What a waste of knowledge and talent if you are merely going to let the competition take advantage of luring consumers away by promoting low prices and convenience.

It’s time all independent agents take up the challenge and actively and aggressively educate consumers on the serious risk involved with buying insurance protection solely on price and convenience. You all understand the risk in doing so. I know many of you have real-life stories of clients or consumers who have paid dearly by worrying more about price and convenience than having adequate and appropriate coverage.

Recently an agent whom I know and respect put a very simple sign out in front of his agency. The sign said “We Spend More Than 15 Minutes On Your Insurance” and it included the Trusted Choice® logo. I posted it on our Facebook page and it was read by 625 people. I posted it on my personal Facebook page where it was seen by even more people, including many not in the industry. It got picked up by Agency Nation, a digital publication of TrustedChoice.com, and received many more views.

My point is twofold. First, social media provides a great vehicle for leveraging distribution of your message, and secondly hats off to Jim Karras in Port Jefferson Station for caring enough to take the issue to consumers.

For years Geico has promoted 15 minutes to save 15%, which trivializes adequate and appropriate coverage and promotes convenience and saving money. Apparently Geico feels that making sure you are properly protected from financial loss isn’t worth investing more than 15 minutes. I believe that shows how much they care about the consumers they insure.

I’m asking every professional independent agent who cares about the security and financial well-being of their clients and potential clients to get the message out that there is more to buying insurance protection than price and convenience. Communicate it anywhere and everywhere you can.

Educate them to the subtle differences in insurance contracts that can have a negative impact on their protection. Help them to understand how to properly assess the risk they face and what is necessary to give them the protection they desire.

Challenge them to stare into the face of having too little or missing coverage and how that could impact them, their family or their business. No one likes spending money on insurance protection but everyone wants financial security. Consumers should understand the various insurance protections that are available and be able to decide how they want to protect themselves so there are no surprises when a loss occurs. Helping consumers choose the right protection at an affordable price is a job best handled by an independent agent.

I hope my message resonates with independent agents and gets them motivated to fight back. I believe most responsible consumers want to be properly protected. They just need to know the pitfalls of buying on convenience and price. That is why agents need to do a much better job communicating the risks and educating all consumers on what is involved in selecting and buying insurance protection.