How to Prove Insurance Is Not a Commodity (And Why You Should)

We live in a society that tries to commoditize everything. Just take a look at Kindle Unlimited or Netflix or any subscription service.

People are getting to the point where they demand quality at cheaper and cheaper prices without thinking about what goes into creating whatever it is they are after.

The process threatens to turn everything from bestsellers to movies to, yes, insurance, into commodities, thus debasing the craft that goes into “doing things the right way.”

It’s this mindset that companies like Google and Walmart have threatened to seize on as they weight entering the insurance sales market.

Interest in what you do from either company is not a new development. We’ve talked about it recently on this blog, in fact.

But you can stand out from the pack and compete. What you have to do is show that insurance is not a commodity but a blanket of security for every aspect of an individual’s life. Here’s how you can pull it off.

 

Tip 1: Walk Beside Your Customers

Many people — even those who shop for insurance online — still prefer the guidance of an insurance agent when it comes to making their final purchase.

Insurance can be a confusing and, dare I say, boring topic for average people, and they feel more comfortable doing business with a human face close to their home base.

Be that guide. Walk beside your customers every step of the way. Provide all that you can for them, making their coverage — strengths and limitations — as transparent as possible.

When they do need to file a claim, be there to hold their hand through it. Communicate by phone or email whenever they’re unsure of something. Give them a direct line. Don’t ever let them feel like they lack support, or they will wonder why they can’t simply buy insurance online.

 

Tip 2: Remember Them

Many times the best things that you can do from a sales standpoint have little to do with sales at all. Since so much of selling is about relationships, it’s important that you show your customers they are more than just a name in a database.

Talk to them about their lives. Learn about them. Remember what they tell you. Try to find a place for it in future conversation. Always be respectful of their time, but also be willing to let them open up if they need to.

Developing a more “human” relationship with your clients will not only help you to empathize with them, thus becoming a better salesperson, it will also help them to empathize with you.

And it’s hard to commoditize a friend.

 

Tip 3: Make Insurance a Value-Based Proposition

So many insurance customers start their shopping by looking for the lowest price without realizing everything they could be giving up by doing so.

It’s the job of the agent to take customers under their wing and show them the value-based proposition of going with an insurance agent.

That means getting them out of the tunnel vision mindset that comes with chasing the cheapest price and into the all-encompassing mindset of how insurance can grant quality and peace of mind to every aspect of their lives.

Working with your customers each year to see the value in policy reviews, stacking coverages, and seizing discount opportunities, will be a huge relief to them. It makes customers feel taken care of, and that’s something the majority of customers are never too sure about.

 

In Summary

While the world is becoming increasingly commoditized, insurance agents should not lose hope. By following the three tips above, your role is one that customers will value well beyond the “digital revolution.”

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