Through the years, society has come up with some pretty wild misconceptions that have shaped the way we think and view the world. Often influencing how we live our daily lives, common myths can also impact the way we run our businesses. Recently, Becky Schroeder, VP of marketing at Insurance Technologies Corporation (
ITC), came across some commonly held beliefs in the insurance industry that raised her concern.
“I see agents who are either refusing to see what’s happening with consumers and in the industry,” Schroeder says, “or, they see it but believe it won’t have any effect on them or their business. These myths can hold you back. They can keep you from making the changes necessary to compete in today’s market.”
Schroeder points out five myths that she sees as holding insurance agencies back – and how to bust them!
Insurtech will replace the independent agent
When we face the facts, it is clear that the insurance technology revolution is in full swing. Consumers want transparent, easy experiences, and insurtech start-ups are bringing that technology into the insurance space. However, they are not here to replace the role of the insurance agent, Schroeder points out.
“Will we see insurtech replace the independent agent channel? No, we won’t. But, that doesn’t mean these start-ups won’t have an impact on the industry,” she says.
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I don’t need to change
Adapting to evolving consumer habits and adopting technology is key for agencies that want continued growth. Schroeder suggests that agencies that want long-term success should take a look at their business and evaluate the areas that need updating in order to create an easier experience for the consumer.
“Consumers are different in 2017 than they were in 2007,” she said. “Through our smartphones we can order just about anything we want or need without any hassle. Our customer service needs can be solved via chat, email or social media. … If you don’t adapt to what consumers want, you will lose clients.”
Millennials are fresh out of college without much to insure and are price conscious and not loyal consumers
Ranging from the ages of 22 to 36, most millennials have been out of college for some time – debunking the common notion. But even younger millennials should not be overlooked when it comes to their value as clients, Schroeder believes. Similar to older clientele, millennials of any age seek the same advice and guidance for what’s best for them when working with an insurance professional.
“The difference between millennials and older generations is how they communicate,” comments Schroeder. “Instead of calling you or stopping by your office, they want to do everything on your website or via email. Meet them where they are, and you’ll have a new generation of clients.”
I get all my leads via referrals so I don’t need to market my agency.
“Relying on referrals as the only source of your agency’s leads is a mistake,” Schroeder says.
She mentions how agency marketing plans can help create a diversified mix of lead sources for an agency. By having multiple lead sources, it ensures that your sales pipeline remains full even if one source were to slow down.
CE is the only ongoing training needed.
“Just because you have received your license doesn’t mean your education is complete,” Schroeder says.
“If you’re not continuing to seek opportunities to learn and improve, you will miss out on critical knowledge and opportunities for agency growth and success.”
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Technology can improve the purchasing process—insurtech CEO
