It could happen, but it’s ridiculous to even think you’re doing it deliberately.
Why would any insurance agent intentionally send good clients to a competitor? It doesn’t make sense — or does it? As it turns out, a lot of insurance agents are doing just that with their auto and homeowners customers.
|Why customers leave
In fact, it happens every day. They don’t need to take the time to text another agent — “I have a great client for you. Low maintenance. Never questions or complains. Always pays on time. Let me know.” There’s no need to even send the message. Before you can whip out your iPhone, you get a text that the account is already there. And why not? Although you had sold the policy, you made no investment in the customer.
Related: 10 crimes against the customer
“What do you expect?” you say. “For what we get paid for an auto, homeowners or businessowners' policy (BOP), it isn’t worth the time. And besides, the internet is getting that business.” Yet, a recent USA Today Vertafore survey tells a different story. It found that “78 percent of consumers prefer to work with real person when reporting an insurance claim vs. submitting one digitally.”
At the most crucial moment in the insurance customer relationship — when they have a loss — customers want to interact with a person. Why? It’s their stuff that’s involved.
The message is clear: No investment in a client, no client. It’s that simple. The personal lines problem isn’t customers fleeing to the internet. That’s just a symptom. The major issue is the failure to establish a relationship with personal lines clients that demonstrate an agent’s value.
If clients are “handed off” to an “account manager,” why not buy online where they get responsive 24/7/365 service and they never hear “Please leave your name, phone number, the time you called, and a brief message and we’ll get back to you as soon as possible.”
What has become painfully clear is that the online insurance operations possess a better understanding of what customers want and expect than do local insurance agents. If you have any doubts, just take a look at their ads. They’re educational.
|Why customers stay
We’re all proud of what we own, and it makes no difference if our pride-and-joy is a new Porsche or a used Pontiac, a one bedroom condo or a home in a gated community. If it’s ours, it means something special to us. But that’s not all. We think well of those who take an interest in our stuff. This is why a “drive-by” inspection doesn’t do it when it comes to building client relationships. Clients want you to see what they own, and it’s also an opportunity to let them know you appreciate what’s theirs.
The home “inspection,” for example, is also a chance to share your knowledge and expertise — and increase your client creds. You want to leave them thinking, “This agent knows something.” This is the time to point out possible discounts, not sitting in an office or asking them questions over the phone. Since you’re there, you can spot potential risks that deserve attention to avert unnecessary losses — and possible premium increases.
Most important of all, this is a ready-made opportunity to answer client questions that might not (read: would not) otherwise come up, what they’ve thought about but never asked. And when you get back to your office, prepare a brief report of your findings and send it to the client (no jargon, please). Insurance people talk about the need to educate clients about insurance, but, for one reason or another, never get around it. This is one of the “classrooms” where it can take place. It’s a way to say you care.
|Moment of insurance truth: When a loss occurs
It all comes together at the moment of insurance truth — when a loss occurs. “Will it or won’t it be covered? Will I be treated fairly or will there be a problem?” the homeowner worries. Sure, the adjuster comes by with an iPad but doesn’t say much; someone they don’t know and will never see again. This also where you, the agent, belongs.
Clients want to know that you see what happened, understand the loss and are taking care of it for them. Knowing that you’re prepared to represent them with the insurance company is what they expect. This is why Nationwide makes the point of having an agent appear magically at an accident scene. It reinforces the message that “Nationwide is on your side.” That’s what every customer wants. And, if they get it, they stay.
For some agents, all this is just too time-consuming and too much work for what they get paid or they may feel their time is better spent elsewhere. If this is how you feel, that’s not a problem. Just hand off your clients to another agent. Or, you may be doing it now.
John Graham is the co-owner of GrahamComm, a marketing services and sales consulting firm specializing in the insurance industry. The firm’s unique “Magnet Marketing” strategy is designed to attract and hold customers. His articles on marketing, sales and business trends can be found on his website, johnrgraham.com, and his free monthly eBulletin, “No Nonsense Marketing and Sales Ideas,” is also available there. Contact him at [email protected].
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