“Fast & Convenient” vs. “Real Value”

I spent some time over the holidays thinking about our business and how it is changing. It’s true that technology is having a major impact on how effectively and efficiently an agency can work with their clients and prospects. Consumers are definitely interested in getting things done quickly and easily. That is a challenge that every independent agency faces today.

Truth be told Internet insurance providers, especially these new insuretech companies, are extremely effective in meeting consumer’s demands in this area. That’s actually all they really have to offer when it comes to providing insurance to consumers. They are totally about speed and ease of doing business.

They fail miserably when it comes to helping consumers understand what protection is available and how to design the most effective package of protection that meets the consumer’s needs. Artificial intelligence, bots and coverage descriptions on their website can’t even come close to the professional knowledge and experience an independent agent provides.

It’s true that some of them actually have “live” people that consumers can talk to but how invested in an individual consumer’s needs are they. Most are available only via the Internet and as a consumer you may not talk to that same person ever again. You also have no way of knowing how much knowledge and experience they have. There will be no face to face visits with them and who do you turn to if the protection you bought is inadequate or your claim payment is denied or not being paid in a timely manner.

Those that don’t have “live” people like to provide advice supposedly based on the level of coverage the average person carries. Really! As a consumer are you interested in buying what someone says is the  level of protection the average consumer carries or what you think is adequate to protect yourself, your family or your business. Everyone’s needs are different as is their comfort level when it comes to risk.

People and businesses are not the same and neither are their protection needs.

Buying insurance on the Internet is unlike any other internet purchase. If you buy something from Amazon and it isn’t right, doesn’t fit, arrives defective or won’t work you can send it back and get a refund. Even if you can’t send it back or get a refund buying an inferior product won’t hurt you too bad financially. If your auto, home or business insurance isn’t right, doesn’t fit or doesn’t have the protection you need you’re very likely looking at a major financial loss with no way to recover.

Buying insurance is a complicated process that is outside the scope of most consumer’s knowledge. An insurance policy is a legal contract and not all policies are alike. It takes someone schooled and experienced in outlining all the areas of risk and providing adequate protection to meet a consumer’s protection needs.

There is no substitute for buying protection from a trusted advisor that can help you pick the right protection and level of coverage. Someone who is always there to answer questions and provide additional information. Who can advocate for you when you have a claim to make sure it’s handled quickly and correctly. Who is not hidden away in some unknown office but instead located in most cases right in your own community. You can’t get that from an online provider of insurance.

SO WHAT’S MY POINT????

The value of insurance doesn’t come from how quickly and easily you can buy it. No it comes from having the right protection, from the right insurance carrier priced competitively. You don’t understand the true value of what you have purchased until you have a claim and that’s not the time to find out you’re not covered. If and when you do have a claim you want to know you have a trusted advisor you can go to that will help you with the process and see that you get all the benefits of the protection you purchased. That same person and their staff are available to you anytime to answer questions and handle any service issues that may arise.

WE all know and understand that. The challenge is educating consumers about this. They say knowledge is power and in this case it is not only power its protection against making a big mistake with major financial implications.

As independent agents many of you are struggling to offer the level of technology necessary to make consumers happy. Doing business with multiple carriers makes the challenge even harder. While you work on making these changes happen you need to be using every means at your disposal to educate consumers on the importance of having a trusted advisor. Someone who can customize protection to fit their needs, regularly review and update their protection and advocate on their behalf when they have a claim.

THAT IS THE MOST IMPORTANT THING WHEN IT COMES TO PURCHASING INSURANCE! Your challenge is to help consumers to understand it and see the value.