Premium cost seems to be the major deciding factor for consumers these days. Municipalities, Fire/EMS districts are no different. Educating a client on what the worth of a product is quite challenging. The definitions of worth read: “the quality that renders something valuable or useful” and “the value of an object in relationship to a purpose.”
Understanding the true worth a good insurance policy may only happen to those who have experienced a paid claim, receiving evidence of protection from the policy coverage. Even that is no guarantee, many insured have a claim paid and assume that all policies would respond in exactly the same way. They would have no way of knowing how another policy would have responded.
The advertising for insurance bombard our airwaves, yet rarely do they highlight the worth of an insurance policy. Instead, millions of dollars are spent declaring switching insurance companies will result in cost savings. In a standard bidding process, seldom will an agent explain to consumers the actual worth of the coverage being offered.
Agents often fear their motives will be questioned. We seem to forget that we, who are agents, are insurance professionals. If agents don’t take the time to explain the VALUE if the policies they are offering, what choice does a client have other than to choose the lowest premium?
It is imperative that consumers understand the possible future implications of their decision by reminding them that, in the event of a large loss, the insurance coverage they are purchasing will likely become the most important item they own. How their coverage has been structured, will matter greatly after a loss. In other words, it does not matter what your policy forms say or who your carrier is, until it DOES matter!
Governmental board members are looking for bottom dollar premium, but they are savvy enough to be wary of offers that seem suspiciously out of line with the competition. To help consumers see through the often protection-poor coverage provided by minimum premium policies, take the extra time to document the coverages that are not being provided. Average agents focus merely on the coverage limits on a declarations page. Agents who’s focus is on to helping consumers make well-informed decisions take the time to educate what exposures are not covered.
Consumers value guidance from experts from all fields. Insureds often assume that they are being presented proposals with all the same risk coverage solutions. Giving the client pertinent information needed to determine if a policy really a “better deal” is superior service. It is beneficial for the insured and for the insurance professional.
The most VALUABLE agent is one who educates the insured regarding their exposures, delivers the most comprehensive VALUABLE policy available and directs clients on techniques to best manage risk to reduce loss.