Auto insurance is on the verge of considerable flux, as it transitions from standard products to include coverage for machines quickly becoming more akin to robots than cars.
What has always been a complex product for consumers to comprehend will likely only get more complicated in the coming years. That presents opportunities for the broker who is prepared to spend the time advising, rather than the broker who’s just trying to spit out policy sales.
“From a general customer perspective, the product isn’t well understood,” said Bob Tisdale, president and COO of Pembridge Insurance and VP of
Allstate Canada Group.
And that is exactly what makes it such a great product for brokers to sell – to have the chance to be trusted advisers and talk their clients through the process.
“It’s complex and difficult to explain it,” Tisdale explained. “[But], particularly, for the broker, they have such an advantage [over customers trying to buy online] – they get to cut through the complexity … and tell it in a way that’s simple for the customer to understand and show them they’ve got their back.”
Tisdale said about nine out of 10 customers will report that they’re confident they have found the best price for their auto insurance. Yet, only about one in 10 will know if they actually found the best coverage. That’s an alarming differential – but it’s also an amazing opportunity for brokers to show their worth and fill that knowledge gap.
“If they can explain to their customers that they’ve got them covered and know their needs, then they are a trusted adviser,” Tisdale said. “This is how they differentiate.”
On the other hand, when brokers try to churn through sales, without educating their customers, they’re abdicating their trusted adviser role and “eroding their value”, he said.
“The value in the broker is the trusted advice,” he noted. “It takes time, and we’ve got to expect a return on that time.”
Too often, he said, brokers are “trying to make it transactional,” instead of focussing on providing advice.
“If you can personalise the product for the customer, they’ll pay you for that. There’s value [to the customer] in not spending their time researching the product,” he said. “There is so much opportunity for the broker to gain the trust of the customer.”
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