The Time Is Now!
The insurance business is changing. Many insurance consumers have been programmed to believe all insurance coverage is the same and there is no need for the professional services of an insurance agent in the buying process. Unfortunately we all know this isn’t true and shudder to think of what might happen to the unsuspecting consumer who relies on this lie and has a significant loss that is either not covered or only partially covered.
Insurance policies are legal contracts subject to clauses and exclusions that can restrict or deny coverage. The average con- sumer, even a highly educated one, has trouble reading and understanding an insurance policy. It’s funny that the same people who will so easily purchase an insur- ance policy they haven’t read or understood will hire a lawyer to review the purchase agreement for a home. They’re concerned they might be forced into buying a home that has problems or they don’t ultimately want but they aren’t as concerned about how well the home of their dreams is insured against different types of damage, some of which could be devastating.
Not only are insurance policies con- tracts, they also provide different forms of coverage that are beyond the general train- ing and knowledge of the average consumer. I’ve even had conversations with non-insur- ance lawyers who don’t understand auto and/or home insurance protection and how it will respond. I think it’s fair to say that there is very likely a significant number of consumers currently written by a direct response carrier who are not properly pro- tected and may very well be at risk for a serious uncovered loss.
At this point you are probably thinking “no kidding Captain Obvious but what is your point.” My point is that as independ- ent agents and brokers we have a duty and obligation to educate consumers on the perils of buying protection without pro- fessional advice. You may think the phrase duty and obligation is too strong, however if you really aspire to be a professional you need to feel that kind of commitment.
In conversations with agents and bro- kers many claim that it’s impossible to over- come the billions of dollars being spent to convince consumers that insurance protec- tion is a commodity to be selected primarily on the lowest available price. We know that’s not true and we need each and every inde- pendent agent and broker to commit to educating consumers of that fact, as well as convincing them of the value of purchasing protection from an independent agent or broker.
Done individually and sporadically the effect of this education will be limited and may go unnoticed by many consumers. Committed to and practiced regularly by the majority of independent agents and bro- kers, there is a very good chance that a sig- nificant number of consumers will be reached and will not be lured into believing what is truly misleading and dangerous advertising. As I write this I realize there are those naysayers who will say it’s a waste of time but I’m sure they said that about the ALS Ice Bucket Challenge when it was pro- posed and look at how successful that was. Social media offers a great opportunity to get this message out repetitively and to expand its distribution. Consumers need to see it everywhere possible and as many times as possible. Imagine them seeing it on every agency member’s Facebook, Twitter and other social media channels. They would see it on every agency website and mobile app. They would see it in writ- ten communication and snail mail pieces they receive. It would be everywhere in agents’ offices as well as in their advertis- ing. Every proposal would include the message. Every agency staff member should understand it, believe it and com- municate it with every person with whom they have a conversation.
If you’re lucky enough to be an IIAB- NY member you are part of the Trusted Choice® national brand that spreads the word about the advantages of working with an independent agent and educates con- sumers on coverage. The brand website, TrustedChoice.com, is a focal point for consumers to learn about how coverage works, check carrier coverage and pricing and be referred to an independent agent for professional advice and service.
We need agents and brokers to talk to their carriers about it and encourage them to get on-board, especially those that have kept the promise of only offering coverage through independent agents and brokers. If carriers offer advertising, brochures and/or videos promoting the independent agency system, use them and let those companies know you appreciate their efforts. Thank those carriers who have backed the Trusted Choice® brand and that offer their products and pricing on the TrustedChoice.com website.
We are at a turning point. The concept of being an independent agent, an entre- preneur who runs their business the way they want is the basis of who we are. We all compete against one another and the rest of the marketplace for business. But on the subject of educating consumers about the fallacy of buying coverage based on price and convincing them of the ben- efits of working with a professional inde- pendent agent, we need to work together as one. We need to spread the word every- where and with everyone. That takes everyone’s commitment and effort. I hope you will make that commitment today. At IIABNY we are ready and willing to pro- vide you with support and help you with your efforts.
