Cheap & Fast – A Recipe for Disaster

I can’t think of a more important advertising campaign for all independent agents to share in than informing consumers of the dangers of choosing insurance protection on what is cheap and fast.

I believe that we owe a duty to the public to bring to their attention the serious possibility they will be uninsured or underinsured if they base their buying decision on who can provide insurance the cheapest and the easiest.

Insurance protection hasn’t changed. Technology has just made it easier to price it and provide it! Determining the proper coverage can really only come from a serious conversation with a licensed insurance professional that can explain coverage and create a plan that fits the individual’s needs.

Most individuals don’t understand what coverages are available and why they are important. Insurance policies come in contract form and how it is worded can also make a huge difference. It is for these very reasons that agents have to take a minimum of 90 hours training and test for a license before they can work with consumers. Artificial intelligence, bots and canned coverage explanations will never replace the personal risk management provided by a professional agent.

So why am I telling you this? You’re probably thinking I’m preaching to the choir and you are absolutely correct!

The problem is many, if not most consumers don’t understand it. They’re lured by constant advertising that treats insurance protection as a commodity. They believe all auto insurance, homeowners insurance and business insurance is essentially the same in how it protects. The only real differentiator is price. Surprisingly this runs across the social and educational strata.

The only way this will change is if a large segment of independent agents make a concerted effort to educate the public. Online carriers and interrupters know this is a weakness. That is why they work so hard taking consumer’s attention to cost and ease of access implying it’s a commodity.

Social media provides a great platform for a campaign like this. An educated consumer is the independent agent’s friend. They understand the responsibility that lies in selecting coverage and purchasing insurance. They want an advocate to assist them with questions regarding coverage, especially when there is a claim. They don’t want to put their financial well-being at risk.

In addition to a consumer education campaign agents need to work with their front line staffs educating them on how to sell value not price. It is important they acknowledge the need for a competitive premium. But it’s also important they note that extremely low pricing may mean missing coverage, slow and inadequate claims payments or failure to easily reach someone when you have an issue. Most consumers don’t want to deal with those things.

An agency’s staff doesn’t need to be shy about the professional services they provide. They should be candid with the consumer letting them know that they feel a responsibility to make sure they understand the personal or business risk they are faced with and what coverages are available to handle them. Professional knowledge, expertise and experience are important when it comes to making sure someone is properly protected.

For a long time I’ve believed that independent agents haven’t really understood the powerful effect they could have if they mounted a campaign against cheap and fast. As respected and engaged members of your community people would pay attention. Most people, even younger consumers, will appreciate the social commitment and concern to educate them that such a campaign provides. Your purpose is a noble one – making sure they avoid serious financial risk.

I sincerely hope we can mount a campaign like this. It’s important for so many reasons. Staying silent puts consumers at risk and allows this misleading campaign of cheap & fast to continue.