Many insurance companies rely on independentinsurance agencies as their sole sales distribution channels,putting the crucial responsibility of bringing revenue on theshoulders of their agents and brokers. Even though agents often arerejected, used and disrespected by potential prospects, they stillpersist with the “never quit” attitude and dust themselves off anddo it again tomorrow.

Is there a better way?

Related: Read “5 Ways to Grow Profitability“

As a sales manager (some call our breed “field reps”) who hasobserved hundreds of agents over the years, I find it dishearteningthat many agents don't have a consistent plan to help thempre-qualify their opportunities.

I ask agents, “Why is this prospect talking to you?” and “Whatpains are you trying to fix for them?” When the answer comes backas, “I just need a quote,” I get that sinking feeling in my gut.Unfortunately, those are probably the exact words the buyer toldthe agent. How do we know what's important for the buyer in thisinsurance decision?

Let's not point fingers at our agency friends. Insurancecarriers have developed online rating systems and, even further,“comparative rating” where a single input of information will spitout four or five quotes from multiple carriers. A personal linesagent once showed me comparative pricing from 22 markets on onepersonal auto account. What are the coverage differences inpersonal auto policies? No wonder our customer believes that thelower the price, the greater the value.

In today's age of automation and immediate price indications, weturn a new generation of insurance agents into data gatherersrather than risk managers. It's all about how fast we can get thatdata into our carrier websites. In commercial lines, whateverhappened to learning about one's business, taking a tour of thefacilities and asking questions to properly manage risk on anaccount? Are there differences in products? Most companies nowoffer a product called a BOP. Everything is included in the BOP,right? How do carriers educate their agents on the differences intheir commercial lines products?

These are all questions that insurance executives and agencyowners ponder in this new age of insurance sales. At the end of theday, we need to get back to the customer. What does the customerwant? Value.

What does the customer perceive as important in his buyingdecision? Is it always price or best protection at whatever cost?Is it convenience in billing and making payments? Identify what acustomer values in the insurance sales process, then tailor yourselling approach to align with those values.

4 Major Values

In insurance sales, it really comes down to four areas:coverage, service, price and relationship. From the NationalAlliance program Dynamics of Selling, these are the four cards inthe game of insurance sales.

Related: Read “Promote Your Personal Brand“

I met an agent in Atlanta who had a simple but effective way toengage his prospects in the pre-qualification stage. He'd simplyask them to rank the aspects of their insurance program by layingout the “four cards” and rating them 1 to 10, with 10 being perfectand 1 needing a lot of improvement. If the buyer engages in theprocess and provides the given ranks, the buyer's values are laidout before you.

The agent asks why the highest score was given that mark. Workto the lowest number and probe deep as to why that score was given.“If relationship, why do you feel that way? How could it beimproved? What is your expectation of an insurance agent?” At thatpoint, the prospect told you exactly what his concerns are.

If price was the only low score, it tells you that this customersees insurance as a commodity. How does this change your approach?If price is his sole value piece, is he a customer you reallywant?

Related: Read “Integrate Success“

What if a client scores 10 on all four areas? You shouldpolitely thank them for his time and walk away. If the prospectperceives that everything is fine in his current situation, whywould he or she leave? People need betterment from their relativecondition to make  a change. Unless you can show that, itwon't be your sale.

Let's take this back to the carrier's underwriting department.Automation has helped carriers and agents place accounts almostentirely without an underwriter touching a file. When this is thecase, does the company really need to pre-qualify? Carriers havebuilt in the pre-qualifying underwriting criteria so an account canmove through their systems. If an account passes all of therequired questioning, a quote or proposal is produced. At thispoint the account gets placed or the agent goes to the next websitefor another proposal.

On more complex accounts that need underwriting expertise, wheredoes the pre-qualification take place? Let's say an underwriter hasapplications on a new account in their inbox. What happens next?The underwriter probably has a few questions about the risk.

Here is the perfect opportunity for that underwriter topre-qualify. Ask “What issues can we solve together for thecustomer?” or “What pains have you uncovered that will allow us towrite the business together?” Asking one or two pre-qualifyingquestions can save the underwriters, their assistants and raterstime on accounts they simply won't write.

So what's it in for insurance agents? When they properlypre-qualify what buyers value in their insurance decisions, agents'hit ratio will improve, allowing them to hear more often: “You havethe business.” At the end of the day, this makes more productiveagents, more efficient underwriters and more focused field repswith a clearer purpose when meeting with agents face to face.

Whether you work for a carrier or agency, the objective is thesame: Unveil the value. We all need to pause and remember to take amoment to pre-qualify our opportunities to learn what our customervalues most.

For agents, the policyholder will tell you what is important inthis buying decision if he is asked. For underwriters and fieldreps, it's just as important to learn your agent's values as wellas what's important to the buyer. Both will help you gauge youropportunity and increase your odds of writing the account.

So the next time you hear that phrase, “I just need a quote,”remember to pre-qualify with a purpose.