BLOG: "Insurance makeover" takes on "comparative rater"

As the complexity of insurance increases, it takes a lot more than a rate comparison to win a client, writes Lynne Wallace of NDOI.

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The world loves "makeover" television. Weight loss, home flips, business renovation, acne treatments, hair removal, hair extensions, cosmetic dentistry, makeup, plastic surgery, and the list goes on. Watching the seemingly impossible become reality and learning what it takes to reach the goal is simply motivating.

We also love to compare everything... price, service, value, etc. What's interesting is that we really don't want to do all the comparing...it's a lot of work. We want someone else to do the "before and after" for us so we can simply "choose". And it's no different in the insurance world. Consumers are always looking to improve what they have and gain time and money in the process. But they want it to be visible.

When you reduce insurance to its most "commoditized" element..."price", the comparison is easier but limited. That's where comparative raters jump in to help people shop price. But shopping price is generally confined to coverage that has seemingly few variables (like auto insurance, term life, or workers' compensation).

As the complexity of insurance increases, it takes a lot more than a rate comparison to win a client. It takes an "insurance makeover", the process of dissecting every aspect of the program and upgrading or replacing components (including service and technology) to achieve a result consumers may not have expected but that they can no longer live without.

Simply handing a prospect a proposal without documentation of the "before and after" is a mistake. As with any true makeover, we have to produce a "reveal"...a quick, simple, and yet amazing demonstration of value and improvement so the order becomes a no-brainer. And the extreme test is whether we can sell it through an online meeting or over the phone.

I remember working hard on a large property/casualty account which involved consolidating a number of individual insurance policies into one master program. My prospect was interested but there were layers of approvals needed to get the order. I knew my solution was the answer for them but had a significant time constraint. I was 8 ½ months pregnant and due about the same time as the proposed effective date. Cutting it close, I agreed to a final meeting five days before my due date. It was about an hour drive from my home.

Of course, two days before the meeting, I was told I'd be crazy to travel anywhere. So, my prospect and I agreed to a "reveal-by-phone". I prepared one of my very first "reveal" presentations. It was a two-page overview that compared what they had with what I proposed...a "before and after" snapshot. I thought that if my presentation was too complicated, it would get jumbled via conference call and result in confusion...and I've learned that a confused mind always says "no."

But not in this case. In fact, they thanked me for getting to the point, and saving them a lot of time. I got the order two days later which ended up being the day before my third daughter was born.

Whether we are selling to a new prospect or renewing coverage for an existing client, the order goes to the one with the most compelling reveal. Why? Because the consumer wants a comparison and if we're not doing it, someone else will have to, and that leaves only the client...or our competition. Why not give them a "must have" outcome that saves both time and money while bringing something innovative to the table...a new goal they didn't even know they had!

Lynne Wallace is the CEO and president of VANTREO Insurance Brokerage and co-founder of NDOI, the National Directory of Insurance.

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