Hand-to-Hand Combat With Online and Bank Insurers

Twenty-two years ago when I entered the insurance world, I couldn’t fathom buying insurance from a bank or the Internet. In fact, I’m not sure the word Internet even existed. Banks were a place to deposit and withdraw money, and get loans. Boy, have the times changed.

Today, insurance buyers are wowed by innovative and catchy commercials on television. The chance to “do-it-yourself” and save a boatload of money is enticing to anyone outside of this industry. Banks figure they already have you as a client, so now they can become a full service resource. Insurance agents have to use hand-to hand combat techniques in order to survive. This is especially true for personal lines insurance agents.

The local independent agent is the one now viewed as cold, distant and uncommunicative—mainly because of the advances in technology and media. It’s time for to get back in the fight, and these four strategies can help agents with the battle.

1. Build relationships. Insurance agents have been really hurt over the years in this area because of call centers. The days when clients still worked with the person who sold them the policy are long gone. I understand the call center phenomena, but you need to strike a better balance. There are ways to reach your clients that don’t involve you doing much more than what you are doing now. For instance:

• Use e-mail or regular mail to send out regular newsletters to add value by discussing ways to save money, protect property and improve coverage. Offer commentary on topical issues. More than anything remind them that you are their agent!

• Offer a “clients only” section on your Web site. This will work well for your tech-savvy clients who might be thinking of shopping on their own. Give them special information or exclusive insights.

• Be active in social media. Like it or not, social media is here to stay. Make yourself accessible to information that is valuable to customers. Give them a glimpse of your personal life to see that you are real—as opposed to a lizard on television!

2. Improve your Web site. Honestly, most agency Web sites are horrible. There aren’t pictures of agents, resource articles, value propositions or testimonials. Why would you spend any money on a site that gives zero value? Spruce up your site so prospects and clients can get a feel for who you really are and what your agency represents.

3. Be visible in the community. The best way to differentiate yourself as a sincerely caring person is to be seen. Attend networking functions, be part of service organizations, publish articles, be active in trade associations, etc. In order to be known and trusted, you need to be seen.

4. Be the expert. Consumers shouldn’t buy insurance on their own. They don’t know what they are buying. You need to put yourself out as an expert. Here’s a few ways to do that: publish articles and op-ed pieces in local business publications; send regular newsletters; offer value at trade shows instead of trying to sell; and create podcasts and blogs. Some of this is repetitive—that’s because it’s important to understand that it’s critical not only for exposure, but for credibility.

I was an agent for more than 17 years and I didn’t do much of this. One reason was because a lot of these initiatives are new. Another is because I simply didn’t know about it until I became a consultant and learned the value of being a relentless marketer. This is the area that Internet-based insurers and banks are excelling in and you need to turn that tide in order to win this battle.

If you commit to these four strategies, you will find that you will raise awareness about yourself, which leads to more opportunities to quote. In the end, you will improve your retention, referrals and revenue.

Dan Weedin (dan@danweedin.com) is a Seattle-based insurance and risk management consultant with Toro Consulting, Inc.