There is a developing current of debate in today's sale of insurance products that due to economic constraints and market dynamics, the buyers of insurance are now focused solely on price—and that customer service is a thing of the past.
What difference does a comprehensive understanding and the ability to explain the coverage grants make, anyway? What is the impact of effective underwriting discipline, responsiveness, claim services, risk management and loss control, and the unique differentiating qualities of an agent, broker or company, when insurance consumers can save 10 to 20 percent on their renewal quotes? Has the marketplace truly defaulted to a price-only consideration? Is customer service dead as an influencer at the point of sale?
As Mark Twain once cabled after his obituary was mistakenly published, "The reports of my death are greatly exaggerated."
For the average policyholder, the purchase of a promise to be made whole may, at the time of sale, seem easy. It's all about the price, isn't it? After all, insurance policies and the companies offering them are all the same, aren't they? For the low-hazard accounts, does the name or reputation of the company, the underwriter or the sales person really matter? Here's the answer to the difficult question: It depends. Simple click-and-bind policies requiring minimal underwriting effort are in and of themselves good "customer service." They serve the immediate need and require less involvement.
For others who do not fall into this "vanilla" category, the importance of talented customer service, attention to detail and responsiveness are an integral part of the buying decision. The trusted relationship formed over the years is a core principle that will drive and sustain the buying decision. You also can see it after a fortuitous event has occurred, when the insurance representatives treat the customer fairly and effectuate the specific purpose of the coverage purchased. Nothing can make account renewal after that easier. The challenge is to make the customer understand—and appreciate—the importance of the personal commitment, differentiation, certification or designation, experience, personality, values, integrity and success of his insurance agent and company as a quantifiable component of the buying decision.
So when someone says "it's all about the price," it is our opportunity to illustrate the total, "price-plus" value of what insurance products and professionals bring to the table. It's more than just vanilla. Personally, I am a chocolate marshmallow fan anyway; and don't hold the toppings. Customer service is alive and well. It is essential in our industry. As we exit the current malaise of market pricing, service will again become the differentiator and an important driver of the buying decision. You can bank on it.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.