Stop Being a Commodity

We’ve allowed ourselves to become a commodity.

As insurance agents, we have allowed the online direct carriers to sell exclusively on price, and we have turned our products into commodities while it couldn’t be more the opposite. Insurance can be complicated, confusing, and frustrating. Consumers want some guidance in purchasing insurance; but, we are not doing a very good job of helping clients understand this. Rather, we are simply trying to provide the lowest premium to a prospect or client.

We aren’t just selling any product, we are selling peace of mind and protection to our clients’ businesses, homes, and families. That’s a pretty important product, so why don’t we sell it as such? By selling on price alone we are devaluing our product and the necessity of using an agent at all. If clients feel they can simply compare coverages and premiums, then why do they need us? (And this is exactly the attitude you see taking place right now within our industry.)

Here are my suggestions to help show customers the value we provide:

1. Sell on coverage. Yes, getting the lowest premium will always be very important. But does you customer even understand what they are purchasing? Show them specific areas within the coverage and use examples as to how this can help them.

2. Be proactive in protecting your clients. Reach out to them to discuss changes in their businesses and families to find out if you are missing some potentially necessary coverages.

With technology now, this doesn’t even have to be done over the phone. You can send out emails automatically to the client to review this information without having to do anything yourself.

3. Review claims scenarios. Purchasing insurance isn’t important until the first claim happens, right? The best way to help clients avoid the focus on price is to put it on coverage, and what better way to do that than to show them how the coverage will respond in the event of a claim.

Let’s stop the commodization of our industry. We have special knowledge and expertise that provide a lot of value to our clients. Let’s stop selling on price alone, and show our clients why they need to make an educated, informed decision in purchasing their insurance.