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Insurance Is About Peace of Mind and Trust

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We have been telling readers that we believe insurance is more about trust, relationships, and value than it is about a policy.  A recent article in PropertyCasualty360.com, by Brent Kelly confirms this concept.

For many people, buying something tends to be both emotional and financial.  With insurance, some people may buy a brand or base their buying decision on a TV commercial.  While other people may buy insurance with a focus on price, they want the lowest cost possible.  Mr. Kelly correctly points out that buying insurance has some of both the emotional and financial elements.

Insurance is a promise from the insurer to perform in the event of a loss, and insurance offers security to the buyer that when something bad happens, all is ok.

We believe that a promise and security are important enough to mandate a conversation with a professional agent who understands the importance of education.

So, why do most people view insurance as a transactional product?—because the insurance industry has trained consumers to view it as such with phrases like:

  • “Save 10%.”
  • “We will quote your insurance in 15 minutes.”
  • “Get a quick quote.”
  • “Apples to apples.”

Insurance companies and agents use these terms and others every day.  “They are catchy, easy for the consumer to understand and takes little effort,” according to Mr. Kelly.

The time has come to use new insurance buying terms like:

  • “I educate my clients about risk”
  • “Insurance is not your only option”
  • “Exclusions matter”
  • “Can I explain your cost of risk?”
  • “I don’t take orders, I provide peace of mind”

Reichley insurance believes insurance is more than a transaction. Insurance involves a trusted relationship built on a promise to put people before policies. Our promise is to listen to you, identify your risks and provide solutions. Every employee has the heart of a teacher. Connect with us to experience The Reichley difference.

How You, The Customer, Benefits From Hiring A Trusted Advisor

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Over the past year or so, we have been discussing the importance of looking at insurance as a service rather than a product.  One area we have not spent much time on is how this adds value and benefit to the customer.

It would seem to me that every family, business owner, or business manager would want to have the following benefits:

  • The complex becomes clear. When you have a relationship with the agent who is serving you, they will make the complex world of insurance understandable.  Only an agent who educates first will be able to help you understand your risk and how best to manage it.  The trusted advisor cuts through the clutter to find the right solution that will solve your problem.
  • Is Insurance the only option? Clients may not always understand that there may be other ways to handle a risk.  A trusted advisor is in the education business—not the selling insurance business.
  • Value-added benefits. With a trusted advisor, you the buyer will have all the resources and knowledge of the agent and his/her team.  You will have help in understanding the buying process, creating of solutions that are designed for you, and support in bringing recommendations to others in your organization.
  • You have access to other experts. Wouldn’t it be great if your agent brought to your team attorneys, accountants, claims experts, loss control professionals and more?  Well, a trusted advisor will do just that.

This is a different mindset for the buyer and agent, but when done correctly it can provide real benefits to your family, business, and life.

Reichley insurance believes insurance is more than a transaction. Insurance involves a trusted relationship built on a promise to put people before policies. Our promise is to listen to you, identify your risks and provide solutions. Every employee has the heart of a teacher. Connect with us to experience The Reichley difference.

What Do The Solar Eclipse And Insurance Have In Common?

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The world recently experienced the Solar eclipse. We know what the specific time it would happen and where the best place was to view the eclipse was. Did you stop to think, who figured that out? It was a complex process, someone very smart, (NASA) figured out the exact time of the eclipse and where the best places are to view it. The mathematically calculations involved in developing the information is well behind the skills of most people. But aren’t you glad there is someone who understands this so we can enjoy their detailed work?

If the eclipse were insurance, the independent agent would be NASA, the sun and moon would be the insurance companies and the public are the policy holders. Insurance is complex and the professional agent manages the complex for the benefit of the insurance buyer.

Insurance is about a relationship involving three parties; the buyer, the independent agent and the insurance company. Here is how we see the needs of each party.

The Insurance Buyer.  Buyers of insurance want peace of mind and confidence that in the event of a loss everything will be ok.

The Insurance Company.  Insurance companies simply want to insure good risks and are transaction focused. Their decisions are financially focused not relationship focused.

The Independent Agent.  Agents transform the complex so their clients can make educated decisions. Helping the client to understand their risks and providing a number of reasonable solutions are the goals of the agent.

The person best suited to bring these parties together is the independent agent.  The agent knows what risks the insurer desires and can educate the buyer in complex coverage design, safety, and claims management, in order to attract the best insurer option.  It is about building a trusted relationship that allows transparency between all parties.

Reichley insurance believes insurance is more than a transaction. Insurance involves a trusted relationship built on a promise to put people before policies. Our promise is to listen to you, identify your risks and provide solutions. Every employee has the heart of a teacher. Connect with us to experience The Reichley difference.

 

Agents…Learn to Be “Consultative” Rather Than “Transactional”

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For those who have been following my posts over the past few years, thank you!  We have been talking a lot about how to better serve the needs of our customers.

If I had to put customer service into one thought, it would be this; be consultative rather than transactional.  It is hard to get your head around this because it seems like our business is nothing but transactional.  Binders, certificates, billing, claims processes, and renewals all seem to focus on the transaction process.

Transactional selling is about need, price, and closing, and the word “client” is nowhere to be found.  Conversely, consulting is client focused through discovery, education, and problem solving.

Here are a few ways you can break out of the transactional cycle:

  • Educate yourself on the client’s risks and potential needs.
  • Realize that you are creating value, not “low cost.”
  • Develop relationships with your clients.
  • It feels better to help someone—rather than sell someone.
  • There is real satisfaction in creating solutions.

Consultative customer service is the direction in which our industry is going.  Trusted advisors actually generate more business and sales, receive more referrals (via their customers), and have long lasting customer relationships.

As author David Meister tells us, “There is no greater source of distrust than advisors who appear to be more interested in themselves than in trying to be of service to the client…A common trait of a trusted advisor relationship is that the advisor places a higher value on maintaining and preserving the relationship itself than on the outcomes of the current transaction, financial or otherwise.”

How You, The Customer, Benefits From Hiring A Trusted Advisor

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Over the past year or so, we have been discussing the importance of looking at insurance as a service rather than a product.  One area we have not spent much time on is how this adds value and benefit to the customer.

It would seem to me that every family, business owner, or business manager would want to have the following benefits:

  • The complex becomes clear. When you have a relationship with the agent who is serving you, they will make the complex world of insurance understandable.  Only an agent who educates first will be able to help you understand your risk and how best to manage it.  The trusted advisor cuts through the clutter to find the right solution that will solve your problem.
  • Is Insurance the only option? Clients may not always understand that there may be other ways to handle a risk.  A trusted advisor is in the education business—not the selling insurance business.
  • Value-added benefits. With a trusted advisor, you the buyer will have all the resources and knowledge of the agent and his/her team.  You will have help in understanding the buying process, creating of solutions that are designed for you, and support in bringing recommendations to others in your organization.
  • You have access to other experts. Wouldn’t it be great if your agent brought to your team attorneys, accountants, claims experts, loss control professionals and more?  Well, a trusted advisor will do just that.

This is a different mindset for the buyer and agent, but when done correctly it can provide real benefits to your family, business, and life.

Is Insurance A Noble Profession?

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We believe without question that insurance is a noble profession. Our reason for this is that the purpose of insurance is to protect society, businesses, and individuals from financial loss and to help them recover when loss or damage occurs.

Google defines “noble” as having, or showing, fine personal qualities or high moral principles and ideals.

“The promotion of human rights was a noble aspiration.”  Synonyms for noble are righteous, virtuous, good, honorable, upright, decent, worthy, moral, ethical, and reputable.

How does this definition of Nobility translate into action? It can be seen in many ways by an agent with Noble attributes. They show up on time and in person to discuss your individual needs. A Noble agent will tell you not to purchase insurance if he believes you do not need it. Insurance Nobility involves education rather than selling.

Here Is How We Define Nobility

Nobility is taking the right course of action when there is an opportunity to take an easier course. In other words, our industry serves a Noble purpose that is to restore those affected back to the same state prior to the loss. Like all industries there are those who look to personally benefit rather than to serve. Since insurance is a transaction of trust and not price, then hiring a Noble agent who serves a Noble cause to serve their customers before themselves, creates a better value and outcome.    We should all strive to earn the respect and trust of our customers and insurance buyers should strive to hire agents that can live up to that trust and respect.

Nobility is something that can only be seen over time, through personal interaction between the agent and customer. The customer with a Noble agent will have an added confidence that their agent is looking out after their needs rather than just collecting a commission.

 

Let’s keep talking!

 

 

 

 

 

Insurance Myth Busters… All I Need Is Replacement Cost Coverage

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Most people think, “If my policy has replacement cost coverage I am ok, right?”  Well, maybe not.  The term “replacement cost” means “the cost to replace the property on the same premises with other property of comparable material and quality used for the same purpose.”

A Common Myth

“My policy has replacement cost coverage, so I am covered in the event of a loss.”

Myth Busted

Replacement cost coverage has limitations. The most important limitation is that it will only repair or replace up to the policy limit.  So, if your building has a replacement value of $500,000, but your policy has a limit of $450,000, you are underinsured by $50,000.

There may also be a need for functional or extended replacement cost coverage in certain situations.  A guaranteed replacement cost policy pays whatever it costs to rebuild your building as it was before the fire or other disaster–even if it exceeds the policy limit.

The example above is an excellent example of why it is important to have an agent who knows and understands insurance, and one who can communicate complex issues in “English”. This allows our customers to make intelligent choices regarding their insurance.

We Think of Insurance as a Promise

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Many people look at insurance as a commodity, like buying car or a piece of furniture.  Consequently, they become caught up in searching for the lowest price for the “product of insurance.”  Insurance is less of a commodity, and more of a promise or service.

Promise vs. Product

Insurance is a promise from the insurer to cover your claim or loss per the terms of the policy.  What many people fail to understand is that policies or “promises” differ from company to company. If you never have a claim, then you do not know if the insurer will live up to the promise you think they have made.  However, if you do have a claim you want the promises kept.

That is where we come in.  As an agent, we help you understand the promises made, and work with you to make sure the insurer fulfills all promises.  We can also help you design a policy that fits your needs.

Here Are Few Things To Remember About Insurance Promises

  • Getting the right coverage is not the insurer’s responsibility – it is yours. You need to determine what limits, deductibles, and coverage you will need to cover your risk.  As an agent, we can help you through that process.
  • You may need special or unique coverage like flood, employment liability, or umbrella coverage. We are here to help you evaluate your risk.
  • Insurance companies differ. We can show you how insurers differ in regards to product and services.

 

Why Low Price and High Value Can Be a Contraction in Terms

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Shoppers are always looking for that next big sale or deal. When it comes to purchasing a 46” HDTV, it is easy to identify all the features you want, and then shop for the best price.  In fact, many retailers might even negotiate with you to get your business. When selecting your insurance, you cannot think the same way.  Why?

  • Insurance can never go on sale, it is highly regulated.
  • Consumers rarely have complete information about various insurance products.
  • Consumers may believe that “popular” or advertised products are high in quality.

Let me make it clear that high priced insurance does not always equate to a better value.  However, if you purchase the low-priced insurance policy are you satisfied that all the coverage terms are consistent with a higher priced policy?  A better way to look at this is to consider the value of what you are buying.  Here are some of the value added advantages you will find in insurance if you do a little searching.

What makes up a high value insurance program?

  • An insurance policy that will respond to your risks when a loss occurs.
  • The extra services offered by the insurer at no cost to you.
  • The knowledge and expertise of the agent. The agent is your key to a high value advantage. The agent is the one who helps you identity your risks and designs a policy specifically for you.  The agent will be there to help you manage through a claim and to educate you.
  • Your agent increases your insurance value by helping you understand why the premiums are different.

Value is more than price

There are also non-price variables that every insurance purchaser should consider.

  • The agent’s experience in your industry. Do you want an agent who primarily only insures homes, to insure your restaurant?  These risks are different and should be treated as such.
  • Insurance companies have customer satisfaction ratings for claims, premium processing, and other services. Do you want to use an insurer with a below average claims handling rating?

In conclusion, only an experienced agent can help you understand and define the true value of your insurance purchase.

Why Hand The Baton To An Agent?

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baton 3432drtLife can be like a race. We all are in our lanes going as fast as we can to get to the next place. Buying insurance can also be like a race.  Except with insurance, you have the option of passing the baton to an independent agent, and when the baton is passed correctly, you and your agent truly become a team that can accomplish great things.

What are some of the benefits of passing the baton to an independent agent?

  1. An independent agent is someone who knows how to run in the insurance fast lane. With an independent agent, you will be able to communicate more effectively with insurance companies, than you can on your own. This gives you an advantage of having an advocate on your team.  We know which markets are interested in your unique insurance requirements.  For example, some markets like contractors while others prefer retail businesses.  And still other markets like to insure motorcycles.
  2. When you pass the baton to an agent, you now have the experience and clout of a well trained professional to finish the race for you. The finish line includes having the insurance relationship and program design that meets your individual needs.
  3. When an agent takes the baton, you get his or her entire team as well. This includes qualified staff to help answer your questions and provide accurate information to you when you need it.
  4. Every race may have a point where claims do happen. If your agent has the baton they will be there to help you get back on your feet and get you back in the race. An agent will take the lead in working with the insurance company during the claims process.
  5. As your team member, we communicate with you. Our goal is to connect with you regularly throughout the year on hot topics that will affect you.

Together we will run the race with professionalism, excitement, experience, and customer service in mind, to deliver the best possible combination of coverage, service, and price.