We are now living in a very competitive world where everyone is trying to outperform anyone that is within their line of business. This is true as well in the insurance industry. Insurers are always thinking of new strategy for their insurance marketing campaigns but many lose sight of what is good and what is bad for their business.
According to the president of Strategic Agencies, Joseph Totah, the most common misconception in the insurance industry is that prospects are always out shopping for the best price. Years ago, it is a usual path for insurance professionals to conduct a discussion where they can evaluate the risk with their prospect clients. This is done in order for them to know the recommended coverage that the client needs.
But as time passes, the trend has also changed. Discussions regarding risks are no longer a must. It is now common for insurance companies to just quote instantly. They are often basing their quotes on the previous coverage that was availed by the client. This is the way of business for some in order to get clients – operating on the virtue of price alone. But this is not the proper way of evaluating and ensuring risks because if it is then there will be no need for an agent since it is pretty doable online.
When insurance agents sell their product through price without evaluating the coverage that a specific client needs then they are operating on a slippery slope. There are also insurance agencies that are offering lower products in order to beat the previous coverage of the client. This system is a flawed one because it gives all agents a negative image especially those who are honest and are using legal methods for their insurance marketing campaigns.
Clients are not price shopping when it comes to their insurance provider. They may be looking for other insurance companies because of the lacking coverage that the previous ones. It is important to conduct insurance marketing campaigns that are honest and transparent to the prospects while making sure their individual concerns are addressed.