Insurance isn’t tangible. People can’t ‘see’ what they are getting, so they rely on the stability of the company providing the policy, and of you as the agent, to tell them they are getting a good product. It’s important to educate a client instead of selling them.
I think people buy insurance for a couple of reasons: they want peace of mind and they want someone to be there in the future if something happens. Whether it’s an independent carrier or an exclusive agent carrier, the fact that the company is strong and stable means something to the client.
Luckily for us, as agents, we have the opportunity to provide our customers with stability. Consumers are buying protection and let’s admit it – the process is somewhat blind for customers. We have to guide them through the process because they are putting 100 percent trust in you as the agent.
I believe people will pay more for value. When you go out to buy a shirt or a pair of pants, you don’t always go to the cheapest place. You sometimes spend a little bit more money to make sure there is value in what you buy, right? Insurance is the same way. Just getting the lowest cost doesn’t mean when you need it the most it will be there. Quality carriers know how much to charge to pay a claim in the future and that’s really what insurance boils down to. The company that knows what to charge to pay a future claim is the company your client will want to do business with.
Cheap insurance is just that—cheap. Customers that are shopping for price alone are not customers that you want anyway because it is likely they will leave you for something cheaper. You want customers seeking responsible, stable, long-term protection. When you are dealing with customers, you must remember everything you are bringing to the table. Be sure to educate them on the value and stability.
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