June 09, 2016
Over the past few years, there has been a movement towards online insurance sales. Websites are ‘connected’ with various insurance carriers, consumers enter in their information, that information is instantly sent to ‘raters’ and then consumers can select from the various quotes. Once selected, many insurance carriers will bind the policy online. This is all done in a few minutes online without the need for any human interaction.
Insurance carriers like the idea of online insurance sales because they are able to reduce their customer acquisition expense and/or the commission that they pay to insurance agents. The carriers also believe that they can reduce their servicing expense, with this group of clients, since they may be more comfortable with customer service being handled online, rather than over the phone or in person.
While these objectives may make great business sense, the reality is, consumers need personalized help buying insurance. Consumers benefit when they are working with an expert in insurance. The following are several reasons why most consumers will always want, and need, to work with an insurance agent when they purchase insurance.
- Trusted. For most people, the home they own is their most valuable asset and they want to protect it. They want to go to bed at night knowing that they are protected against their worse nightmare. When someone is buying home insurance, auto insurance, health insurance and life insurance, they want to know what they are buying and that it will meet their needs and that of their family. Insurance agents are able to convey trust, far more than any website or online system.
- Educated. Insurance agents are educated on the business of insurance and how to minimize one’s risk due to unexpected situations. They understand the law and what things you will be covered for and what things you will not be covered against. Most websites assume users know this. If one doesn’t, then their home, auto, health and family may be at risk.
- Experienced. Most insurance agents have years of practical experience. They have seen the best and worst of situations related to auto, home, life and health insurance. Insurance agents can tell a buyer what may or may not happen if they decide on a level or type of coverage. There is nothing more valuable than practical experience when making decisions about the type of insurance, coverage levels, deductibles and more.
- Forward looking. Insurance agents can be forward looking to anticipate future of needs of insurance buyers. They are able to understand that if someone installs a new pool, they may want to modify their homeowners insurance, if they become first time parents they may want to buy a life insurance policy. By anticipating future needs and risks, insurance agents provide a personalized service which could never be replicated by some online service
- Consider the subjective. An online insurance buying system can easily help insurance buyers or auto insurance leads compare objective measures like price, coverage, terms, deductibles and more. However, to make sure that one purchases the best insurance coverage, buyers need to consider subjective measures such as convenience, service, location and speed of payout. Insurance agents are best position to understand these objective measures and assist consumers evaluate the various options available to them.
- Big Picture Thinking. Done right, insurance can be a very important component of one’s financial plan and future. Many people consider their insurance needs in silos, ignoring how they should work in tandem to provide the best coverage or protection. Insurance agents are trained professionals who can look at the big picture to help insurance consumers select the best bundle of insurance products, that work together. This is something that even the best website, with the best artificial intelligence, would struggle with.
Agent Ethan Kosmin Generated over $200,000 in premiums during first year in business thanks to Contact Concierge.
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