Selling insurance has one of the single most difficult hurdles to overcome. How to convince audiences that they should buy something they believe they don’t need.
Selling insurance isn’t like selling something people want. Consumers want iPhones and a nice-looking car. They will gladly pony up for them.
Selling insurance includes another dilemma. People believe that insurance companies are simply out to take their money and will automatically fight any claims. Whether that’s belief is true or not, it is believed. We have conducted research in this industry and that belief is the single biggest hurdle for insurance sales reps.
What are the other selling insurance hurdles?
Without giving away findings that are preparatory to our clients, our research has borne out a few themes:
- People, including white-collar professionals, believe insurance companies are unfeeling entities, which means claims of caring rarely resonate.
- Fear-based messaging (“What happens when you die?”) is ignored because it’s seen as the start of a scam.
- Policies are confusing, feeding into the belief of insurance companies being deceitful.
Here’s the catch. Agents, those chosen to sell insurance products, often feel the same way. They also believe that messages about caring are not believable. They are also sick of telling the same story. And they find working with insurance companies to be cumbersome.
This should not be a surprise to anyone in the industry. What is surprising is that too few in the industry do anything about it. Yet overcoming those hurdles is exactly what would increase market share.
Let’s address each hurdle.
Insurance companies are unfeeling entities:
This is the most difficult hurdle because few believe any company cares more about its customers than its bottom line. This belief is especially acute with insurance companies because insurance is a low involvement category until they have to use it. Then it is high involvement and highly personal.
An effective brand message is the best step. Any message must be aligned with that belief (insurance companies are unfeeling) and positioned against the competition.
Ask yourself these questions: What is it that audiences seek in their lives? What are they truly seeking when considering insurance? What are they rebelling against if they are forced by an employer to seek a particular structure of insurance, such as a health savings account?
More importantly, the message should be about the customer, not you. You lose the audience’s attention the moment you begin talking about you (either in person or in an TV advertisement).
Selling insurance becomes even harder when the rep knows that all products are the same and the only effective tool is the personal relationship with the individual customer. This is one of the main reasons an insurance salesman is such a cliché. Customers need insurance, not someone pretending to be their newest best friend. Be expert and understanding.
Fear-based messaging is ignored:
So stop doing it. Advertising for life insurance is especially guilty of this, often asking the question, “What will your family do when you’re gone?” This might have worked decades ago when life insurance was a relatively new idea. At its best, protecting your family is a category benefit.
Today, audiences have become immune to that message and consider their own investments as savings against such an outcome.
Think about this. Thousands of messages come into our view every day. Even the logo on a pen is a message. Humans, though, have a filter. They only hear messages that are about them.
What insurance companies and agents must do is understand the emotional reason why someone would want to protect something with insurance. Not a rational reason. An emotional one. Too much messaging today is superficial and paper thin. (A better example for life insurance: “It’s what a good father would do.” A definition of who they are when they buy insurance.)
Policies are too confusing:
This is an industry-wide problem. Policies have variations on variations, papers upon papers, language that is too confusing. Even agents have trouble deciphering everything.
To potential customers, it looks like an attempt to intentionally confuse them so the fine print can’t be understood.
So much of the world seems complex, so we thirst for simplicity.
Simple is best. Make everything you do, including how you explain policies, as simple as possible. What is the final result? The details are usually ignored.
The most powerful way to clear the hurdles
The most effective way to address all of these issues, however, is through brand. So many insurance companies get brand wrong. GEICO spends millions on a message – “15 minutes could save you 15%” – that isn’t believed. The result if market share stagnation. As an even worse example, Genworth Financial once said: “We’re big, safe and friendly.” Ugh.
Brand is about the customer. Who they are when they use your brand. We are winners when we wear a Nike shoe because we “just do it.” Apple positioned itself against everyone else, saying that its customers “Think Different.”
Developing a brand like that is hard work. It takes in-depth research, leadership willing to slay sacred cows and an understanding that emotion works better than the rational.
Insurance companies and agents should take note. Because audiences right now believe you are out to get them. And get them good.