COVID-19: The 8-step checklist for insurance agencies
Will your agency rise or fall in today's crisis?
“COVID changes everything,” Mike Becker, CEO of PIA National, recently said that to me.
You probably agree. On the emotional side, everyone is dealing with ‘scary’ emotions dialed up to 10, such as fear, anxiety and uncertainty.
On the business side, the lazy, gentle ride of yesteryear is long gone. Even in this industry that is well-known for taking its sweet time to change, ‘fast’ has become the new speed of insurance, as we zip toward trends like:
- Remote work
- Digitizing the insurance agency
- Transforming the customer journey
Although none of these are new trends, agents now have to move them from the file marked “things I can ignore (until they bite me like a snake)” to “must do today; should have done before.”
When you set your New Year’s resolutions or your 2020 business goals, COVID-19 wasn’t on the list, right? It is on the list now. And, as Mike said, “COVID-19 changes everything.”
This is the industry watershed moment. Today’s crisis determines who will rise, and who will fall. I’ve been around long enough to have suffered and survived many a crisis. Some, delivered by the “big outside world” and some simply made by me. Usually in the category of strategic blunders.
I drew on some of those experiences to craft an eight-point plan to help my clients thrive — not just survive — in the COVID-19 pandemic.
You can use this as a full checklist or just take the parts that work for you.
- Make a shortlist. Crisis demands focus. Clear thinking. Simplicity in the presence of complexity. Review the items below. Keep what works. Burn the rest. Make a list small enough to fit in your pocket. Read it. Check things off. Keep moving.
- The ‘Inner Warrior.’ That’s you. The world will demand more of you as a business leader than it ever has. You’ll serve better strong. Do whatever you need to ‘get right.’ Eat right. Sleep right. Exercise right. Get on your knees when you need to. Be vigilant over your energy. This is one of those things that’s so easy to ignore.
- Be the leader you’re called to be. In times of crisis, people look outside of themselves for answers. Your team is looking at you. Your customers are looking to you. They need to know: ‘Am I safe?’ ‘Is this the right place for me to be?’ This is your moment of courage. Tell the truth. Share your strategy. Be emotionally intelligent. And do those things over and over.
- Technology. Modern agencies were prepared for this crisis. They already had the technologies to navigate through it. First, you need to secure remote technologies — secure login, password protocols, online scam training, hackers, operating system ‘holes,’ etc. Second, you need to use and master the technologies you need for remote work, collaboration and execution. Third, you need to determine if you have the technologies you need for today. If you didn’t communicate both human concern and value when this crisis hit — using modern technology — you’re already behind. Catch up.
- The issues of insurance. They will raise their ugly head. Train your team to answer the questions of anxious customers. Does business income cover the virus? Why not? Doesn’t it cause physical damage? What about workers’ comp? Should you be advising customers on cyber now that so many are working at home? You may think about directing virus-related questions to their respective carrier. Whatever you do, have a discipline. Train the team.
- Your finances. Some agencies will suffer more than others. All need to be vigilant. It’s time to have an uncomfortable conversation with your financial projections. Examine vulnerable niches. Run cash flow projections if you need to. When you need it, that’s when cash is king.
- Strategy. It answers two questions: where will we play and how will we win? But COVID-19 complicates it. COVID-19 demands a short-term strategy for survival. Take care of the short-term. But use it to set you up for the long-term. Now is the time to determine the most lucrative niches. The tools and technologies you need, and the team you need to thrive. This point — strategy — will most determine who rises and who falls. Because fast-moving agents will use it to create value in the crisis while others are floundering with the crisis.
- Marketing. Many marketers are adjusting their marketing. They’re changing their tone — infusing it with empathy. And they’re changing their approach. In some cases, they’re focusing less on ‘customer acquisition’ and, for now, more on ‘audience expansion.’ That’s a bit of an advanced concept for many agents. You might call it ‘growing a list.’ Once you have it, you need to nurture it. That requires new marketing skills, lead magnets, content creation, PPC advertising, and funnel building. If you don’t know how to do those things, learn it. It’s the future of marketing anyway. Again, catch up.
You’ll probably see three kinds of things on this checklist. Things you need to do; things you need to get better at, and the things you don’t need to do. Whatever you see, make a list. A shortlist.
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