https://completemarkets.com/Article/article-post/2323/The-Three-Biggest-Secrets-In-Insurance/
The Three Biggest Secrets In Insurance
Motivational speakers love to put the word “secret” in the title of their presentations. I’ve sat through many sessions, and I’ve always wondered what kind of “secret” you can tell on the stage of a packed auditorium?
In truth, when it comes to sales, the most important “secrets” are those things that experienced, successful people know but won’t necessarily say. So let me tell you the three biggest open secrets of our insurance business.
Secret No. 1: We’re All Selling the Same Thing
Many producers waste a lot of breath trying to convince prospects that the insurance products they sell are different from those sold by the competition. This is a very hard sell in itself. Why?
Because insurance is a fairly uniform commodity. All of the Big Dogs in the carrier and agency community are offering the same basic thing as their competitors, because it’s virtually impossible to design a new, exclusive product. If you can create a new coverage or rate deviation and file it with the state, I guarantee you that your competitor can, too.
This is a powerful “secret’” because it undermines the intuitive approach to sales, which is to announce, "Buy mine, because it’s the best!” When there are 10 other agents lined up behind you with the same product, that’s a tough idea to sell.
Unfortunately, most producers insist on sticking with this approach. They spend most of their time with prospects pitching their products, services, and carriers, as well as their agency. The result: Secret No. 2
Secret No. 2: We’re All Saying the Same Thing
Sometimes I feel sorry for the junior executives in corporate America who are given the job of meeting with insurance agents. How many times have you told them, “We have a lot of markets, great people, experience, knowledge and good service. Can I offer you a quote?”
When 10 different producers are selling the same product - all selling it the same way - you have to wonder how the prospects are able to smile and nod politely as much as they do. It’s not that they’re indifferent. In my experience, if you can break through the clutter and convince prospects that you can, in fact, make a difference for them and their companies, you will have a very interested audience.
Once again, producers make the common mistake: They try to break out by focusing on the product. They “go geeky,” laying out elaborate explanations about “coinsurance,” “promulgating the e-mod,” or “updating the unit stat card.”
The strategy seems to be to show the prospect how well you understand the insurance industry and how familiar you are with your own products and services. This sends us straight to Secret No. 3.
Secret No. 3: Your Prospect Doesn’t Understand Insurance!
Although there are a few exceptions to this statement, in most cases business people have only a vague understanding of insurance. They know they have to have it. They know they can get into trouble if they don’t.
Review in your mind the prospects you’ve met, and ask this question: How many of them, if you quizzed them right on the spot, know what their policies do and don’t cover?
How many prospects know how their business has been marketed, or understand the effect of claims on their price, or the effect of claims reserves on their Workers Comp mod, etc.? How are you going to dazzle these people with your knowledge of risk-analysis theory?
Insurance is an arcane, but often expensive, element of a prospect’s business, one that they little hope of, or interest in, fully understanding. As a result, the most important element in the prospect’s decision-making isn’t price or promises of future service. It’s trust.
I talked to an agent recently who had obtained an appointment by referral. He had saved his prospect a significant amount of money and improved the coverage. He walked out of that presentation literally glowing with confidence.
Two days later, he got the letter.
The letter said, in essence, “You’re great! Your price was great, the coverage was great, your proposal was great. Even the vibrant color of your proposal covers was great. “However, unfortunately (for you, fortunately for me) my agent took me to lunch yesterday. He reminded me of all the things he had done for me during the past three years. He assured me that the pricing you brought to the table was unpredictably lower than expected, but he felt sure his company would match it. As a result, I’m not changing. Please feel free to call me next year and save me some more money.”
In other words, the deal came down to “I know this guy, I don’t know you. You’re both pushing the same thing, so I’ll stick with the guy I know.”
How do you break this cycle? That’s the topic of another column, but let me make a few suggestions.
First, shift your focus from sales presentations to sales interviews. Get curious about what’s really going on inside your prospect’s head. Ask yourself:
“If I were the buyer, what would really be important to me?”
“What surprises would concern me”
“What’s wasting my time?”
In particular, focus on the elements of insurance that prospects already dislike: the unpredictability and their seeming lack of control over these costs. If you can show how you can put prospects in charge, that the way you deliver services will empower them and put them in control, you will their attention.
Second, look for ways to establish rapport, to help prospects feel comfortable sharing their goals with you. Dig deep. Be curious. Stop assuming you already know what prospects want and why they want it.
Finally, when prospects have identified their goals clearly, find specific ways to use your unique abilities to achieve those goals. Take yourself out of the uninteresting, confusing arena of insurance, and put yourself into a conversation that prospects will find much far fascinating - how insurance can help them succeed.
Chances are, this is a conversation that they’ve never had with the incumbent agent.
It’s not easy - but the other option is failure. It’s no secret that winning is always harder than losing. The real secret is to understand that the game you’re playing isn’t about the quality of the insurance you sell or the agency you represent. The secret to success lies in your unique ability to help your clients succeed!