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Delta Business Solutions » Be a ‘Risk Manager’

Be a ‘Risk Manager’

Posted October 10th, 2012 by Spence Bowthorpe with No Comments

In case you haven’t noticed, insurance agents are being DE-VALUED in the marketplace.

First of all, the internet is making insurance quotes easy and fast. Anyone can spend a half hour online and get multiple quotes for your auto, home, or life insurance.

Secondly, insurance is becoming commodotized. Spell-check is telling me that’s not a word… okay, I made it up.  What does it mean?  It means that people’s perception is that all insurance is the same.  That there’s no difference in coverage, no differentiation in how you purchase it, and no difference in how claims are handled.  The only difference?… you guessed it… PRICE.  (Remember, this is the customers’ perception.)

Thirdly, BIG advertisers, REALLY BIG advertisers… like Geico and others, are sending a repeated (and repeated, and repeated) message to the marketplace… “You don’t need an agent, just make a phone call to us and save 15%.”  People are being brainwashed and indoctrinated with the idea that the ONLY thing that distinguishes one insurance policy from another is price.  And, that agents are merely order-takers.

Okay, here’s the fourth and final blow: many agents are doing nothing to combat this insipid, calculated, and life altering shift in the market! What are most agents doing?  Here’s my list:

  1. Offering free quotes.  When a client calls, they get a free quote, that’s it.  Nothing else to differentiate the agent.  If he/she is not the lowest price, they’re done.
  2. Making an annual or bi-annual contact with clients. Don’t get me wrong… contacting clients is a good thing.  Most agents have no contact with their clients other than an occasional birthday card, calendar, or… even worse, a solicitation or advertising offer. People are looking for value… not low price, not upsells, not surveys, calendars, or birthday cards… they’re looking for expertise, advice, tips on things that matter to them.  —More on that in a minute.
  3. Selling insurance.  What? Isn’t that what an insurance agent should do? NO! You don’t sell insurance!

Okay, to keep this under 20 pages, here’s the short version:  People face all kinds of risks in their lives and property.  An agent can’t insure everything.  In fact, look at the diagram below, insurance can only influence one of four quadrants of risk.

An insurance agent is able  to help clients ‘Transfer’ a few of their risks.  Who is going to help them with the other 75%?

Who can teach them how to avoid certain risks, how to reduce certain risks, and how to manage some of the risks they must retain? Who can make sense of all this?

Here’s the answer: a trusted agent who understands it all and has solutions for everything… not just insurance solutions.

If you’re a restoration contractor reading this, you are in an incredible position to bring value to your agents who refer business to you.  You have the knowledge and tools available to you right here.

Agents who work with you will get more leads and make more sales, have loyal clients, be different and distinctive in the marketplace, and have lower loss ratios.  You’re clients will flourish in their insurance business.  Is that a brand you’d like to hang your hat on?  If so… talk to us.

Posted in Insurance Companies Marketing Sales
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Written by Spence Bowthorpe

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