Lack of Client Knowledge Presents Sales Opportunities for Agents (DPC: Edition 1; Article 2)
Issue–A recent article in the Insurance Journal (Journal) daily headlines email titled “Gaps in Awareness of HO Coverage Provides Opportunity for Agents” came with a message that is no surprise to insurance professionals: Many consumers face exposures that they don’t understand and they don’t have the proper coverage for.
This lack of consumer knowledge gives insurance agents an opportunity to establish a good relationship with clients via education that helps them make informed decisions regarding insurance purchases.
Discussion–The Journal’s article specifically referenced cyber insurance, umbrella policies, and recreational vehicle exposures. Of course, the lack of knowledge is not limited to just homeowners policies. Other examples that come to mind are uninsured motorist coverage, ordinance or law coverage, coinsurance, agreed value, prior work exclusions in a CGL policy, flood insurance, and many more.
This statement was made in the Journal’s article: “…the survey found that after umbrella coverage was explained to homeowners, two out of three unprotected homeowners would be interested in umbrella insurance, and likely open to a conversation with their insurance agents about this coverage, with almost a quarter being “very interested.”
Summary: I am biased, of course, because in my career I have presented over 3,000 seminars to insurance professionals around the country. We owe it to our clients to educate them about insurance exposures and coverages available. Before that, however, we need to educate ourselves. For many years, I’ve challenged insurance professionals to spend just five minutes per day in self-education. That’s just 21 hours per year. Take educational classes, more than required just to satisfy your state CE requirement, subscribe to one of more of the Insurance Journals emails, work on a professional designation, or attend an insurance related trade show. Subscribe to insurance blogsites, such as this one.
Conclusion: With knowledge and education comes the ability to increase sales of the proper coverage for clients. A fellow “Insurance Nerds” has an item on his “Top Five List” of, “Sell with conviction, covered clients don’t sue.”
My takeaway: Educate yourself, educate your clients, and always quote the best coverage possible. Remember what Wayne Gretzky used to say…
“You miss 100% of the shots you don’t take.”
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