The insurance business can sometimes feel transactional, as agents process renewals and help policyholders make changes to their coverage. But the trusted advisory relationship that develops between the agent and policyholder is critical as agents sell protection, not just policies. Having this relationship-based business can help agents stand out in a competitive marketplace where policyholders are often seeking more from their agent.
Read on to learn how to reframe the insurance conversation and sell protection, not just policies.
Sell Protection to Policyholders, Not Just Policies
Policyholders want to have a trusting relationship with their agent. By focusing on ways to sell protection, agents can help develop this transparent, long-term relationship where their advice is trusted by policyholders. Here are five ways to accomplish this goal:
Lead with education, not a sales pitch. Consumers want to understand what they are purchasing. They would rather be educated on a product than be sold on it, especially when it comes to complex products like insurance. Agents can educate policyholders about their coverage, any gaps that may exist, and alternative ways to transfer risk. Try using renewal meetings to educate, explain the findings of a coverage audit, and offer webinars or newsletters to educate consumers.
Personalize protection discussions by aligning coverage to goals. Insurance buyers do not want generic coverage, rather they know they need coverage specific to their needs. Instead of discussing standard packages, agents can personalize their recommendations to the policyholder’s unique goals. This means asking about changes to the policyholder’s business or personal life and offering recommendations based on updated details. For example, a policyholder with a teen driver heading to college may need an update to their auto insurance and umbrella coverage. Customization is a key component of customer service and helps policyholders view their agent as a proactive partner, not simply a salesperson.
Consider claims useful teaching moments. Claims provide an opportunity to reinforce the value of the policyholder’s insurance coverage. Instead of dreading claims, agents can turn them into teaching moments by explaining how they are covered for the loss because of the way their insurance program is structured and follow up after the claim has been resolved with a resolution meeting. During that review, discuss what worked and what needed improvement throughout the claims handling process and ask questions about the policyholder’s satisfaction with their coverage. If any part of the claim was denied, discuss how coverage could be refined for future losses.
Translate risk into real-world scenarios that are easily understood. Insurance is often theoretical for consumers until they suffer a loss. But agents can help policyholders better understand and visualize how coverage applies to their business or life with clear, relevant examples. For example, an agent can reframe coverage discussions by giving examples of what may be covered. Instead of saying a policyholder needs EPLI, explain how the coverage could apply if an employee were to file a discrimination claim or wrongful termination lawsuit. By linking coverage to a relatable loss scenario it makes risk feel tangible and protection necessary.
Reposition the agent from policy seller to risk advisor. Independent agents have an advantage over direct writers and digital platforms in that they can customize and humanize their expert approach. Take advantage of this to reposition the role of the agent to one of trusted, strategic risk advisors. Agents can introduce or refer to themselves as a risk advisor or strategic partner helping policyholders to identify risk and design solutions to protect the policyholder’s assets. By reframing in this way, it positions the agent as a collaborative partner rather than someone that provides a commoditized service.
Become a Member of the American Agents Alliance For More Tips
Members of the American Agents Alliance enjoy access to more helpful thought leadership content and valuable discounts. Become a member today to gain access to exclusive member benefits!
External Links:
- https://www.forbes.com/sites/randyillig/2018/11/02/the-key-to-boosting-trust-in-sales-put-the-client-first/
- https://www.forbes.com/councils/forbesbusinesscouncil/2024/02/23/the-power-of-product-personalization-and-customization/
- https://www.mckinsey.com/capabilities/operations/our-insights/the-human-touch-at-the-center-of-customer-experience-excellence
