Today, I read a thought-provoking article from PC360:

10 Trends Impacting the Insurance Industry

Among other issues, I was particularly struck by this statement:

“A study by Novarica identified millennials as researching items before purchasing them, frequently buying online, and preferring digital channels due to their speed, flexibility and ease of use.”

That doesn’t mean that the insurance buying decision must move to “digital channels due to their speed, flexibility and ease of use.” What it means is that, as an industry, we must explain to millennials why the insurance buying decision CANNOT be reduced to an Amazon-like “1-Click” purchase. They are entering into a complex, legal contract where most of their assets and a big chunk of their potential earnings over the next couple of decades is at risk. They’re NOT buying crew socks or hand lotion or downloading an MP3.

My son is a millennial. He gets it. I took the time to explain to him what financially catastrophic risks he is exposed to and why buying the right insurance product for him from a knowledgeable agent and a reliable insurer is critical. One illustration involved a medical analogy…if he thinks he has been exposed to something that could be a serious health issue, does he want a doctor who is quick or thorough? As a result, he has a very good, comprehensive condo policy, a good auto policy that provides more in the way of coverages than exclusions, and an umbrella policy…and he understands why the premium he pays is a good investment.

Don’t give in to the hype and hyperbole or the incessant price-focused advertising. Educate consumers at every opportunity. It’s a big part of being an insurance professional, it’s what distinguishes you from the order takers, and it’s key to your survival and prosperity. MORE IMPORTANT, it’s the key to your customers’ financial survival and prosperity.

The single most important trend impacting the insurance industry is the continuing perpetuation of the myth that insurance is a commodity that can be sold like generic consumer goods.

Photo by Capture Queen ™

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Bill Wilson

Founder at InsuranceCommentary.com
One of the premier insurance educators in America on form, coverage, and technical issues; Founder and director of the Big “I” Virtual University; Retired Assoc. VP of Education and Research from Independent Insurance Agents & Brokers of America. Reprint Request Information

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