Full disclosure should be the governing principle of the insurance industry.
That is, agents should take it upon themselves to explain to current and prospective clients how the insurance business operates; that they, the individual representatives for this or that carrier, do not have a conflict of interest, where the sale of a particular life insurance policy will earn that agent a month-end bonus or a luxury vacation at the expense of a client's budget or personal goals.
And, should such incentives exist, if there is an office competition to make that sale, heightened by a manager's impassioned pleas and incessant demands to his or her agents, then the public has a right to know this information.
Agents should volunteer this material, period.
Put aside what the law requires (or, more accurately, does not require), and think about the relatively unscathed reputation our business enjoys – in spite of the 2008 economic meltdown – and the ways we can strengthen our bond with the public.
Think of the goodwill we would accrue, never mind the importance of doing the right thing, as a result of explaining how the insurance industry does business.
Consider, too, the peace of mind potential clients would have – and the word of mouth marketing these people would do on our behalf – if we dispel the misconceptions about how we earn our commissions and how we select the policies to present to our respective prospects.
For there is a misunderstanding among clients that they are the ones who pay our commissions; and thus, any such policy they review is (by their logic) best examined with a strong degree of skepticism.
That attitude, incorrect and unjustified though it may be, will persist unless we embrace the kind of transparency our industry deserves and our clients expect to receive.
I write these words from experience, where, in my role as Founder of Local Life Agents, I recognize that the most valuable asset an insurance agent can possess is independence.
The independence to reveal everything, without fear of reprisals or recriminations from some mysterious and concealed (by floor-to-ceiling curtains) insurance wizard, is, in reality, a license to become a more successful agent with a more satisfied clientele.
The alternative, from which our brethren in the fields of financial consulting and investment banking have yet to show signs of recovery, is also clear: The equivalent of a not-so-discreet mass stripping, in which incriminating emails, contradictory statements and outright lies (to clients) sensationalize the media and sate the appetites of the most aggressive class action attorneys.
Put a different way, the truth craves openness; it almost always finds a way to emerge from the deleted files and whispered secrets of the powers that be.
Truth Is the Ultimate Reward: Talking to Your Clients
By practicing a pledge of full disclosure, agents can also educate their clients about the how and why of the insurance industry, as in: How does this business run, and why should I, as a current or future client, purchase this life insurance policy?
Answering these questions does not guarantee anything, except the confidence agents can cherish and insurers can appreciate by virtue of acting with integrity.
That quality, as mentioned previously, has plenty of dividends.
It casts our profession, rightly, as one infused with the desire to share information.
It positions clients as figures of respect, not figures to be tabulated as sources of profits and losses.
It is the ultimate insurance policy against ignorance and indifference.
It is our collective summons to action – today, tomorrow and forevermore.
As the Founder of Local Life Agents, Brad Cummins offers the wisdom and personalized service his clients deserve. This philosophy defines Brad’s entrepreneurial spirit and successful brand of business leadership. From starting his own agency from scratch, for Farmers Insurance Group in 2005, which he later sold in 2014, to his nationwide launch of Local Life Agents, Brad customizes solutions for his clients. A graduate of Ohio State University, Brad and his wife and son reside in Columbus Ohio.
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