One of the most vexing issues confronting independent insurance agents is the notion that insurance is a “product” versus a “service.”
When an independent agent facilitates the sale of an insurance policy, the product is not a tangible one. Yes, the policy can be tangible, but it is really a contractual promise to pay—to provide the policy’s benefits when needed. Independent agents approach dealing with their customers’ objectives in a fundamentally different way than other distribution channels: The policy is a means to an end, not the end itself.
The agent instils with their customers that the sale of the policy is not the end of the relationship, but rather the beginning. And that is critical to understanding the overall value proposition of an independent insurance agent.
None of this is news to independent agents, but a fundamental question is whether it may be news to your customers. When you field an email or call from a prospective client or take an initial meeting, do you take the time to differentiate yourself from the two other distribution channels (direct and captive)?
That doesn’t mean launching into a monologue about insurance. In fact, the first thing you should do is listen to the prospect’s needs and take some basic information. Once he or she has shared their objectives, take a few minutes to position your agency in a superior light, explaining the essential difference between an independent agency and competing channels. This should apply whether the meeting is in person, via phone, over Skype or through another digital communication platform.
So what’s an effective way to communicate the top attributes of your independent agency? A great starting point is sharing the Trusted Choice® Pledge of Performance (right).
It may seem too basic, but each agent can customize the experience by providing examples of how he or she has helped their customers in the past—and how his or her agency leverages technology to deliver services in an efficient way. It doesn’t matter whether the client needs personal lines or commercial lines insurance or both. Project CAP was designed to help agents compete online and enable them to engage prospective customers in a dialogue that differentiates their agency and the carriers they represent from the companies that simply provide a quote.
Agents need to invest the time to explain the value-added difference the independent agency channel is capable of providing. Walk the walk and be persistent. Independent agents can only maintain their significant advantage in the overall value proposition if the customer is educated about what makes our distribution system better.
Dave Evans is a certified financial planner and an IA contributor.
