Sales Tactics to Watch

How to avoid falling for negative sales tactics in the insurance industry. What should you look for when choosing a reputable agent or agency. Are there certain red flags that you should be aware of?

Insurance professionals sell an intangible product. Sure, there is a paper policy document to touch, review and file- but a consumer of Insurance is really buying one thing; a promise that the policy in place will provide the desired outcome if an incident were to occur. Avoid letting that time of loss be when you find out you did not get what you thought you paid for.

Purchasing an insurance policy should consist of a two-sided conversation between a licensed agent and the consumer. High-pressure sales techniques such as fear tactics do not promote a healthy agent and client relationship. If you aren’t comfortable in a conversation with an agent (for any reason), think twice about how you may or may not be able to access your agent’s advice, rely on that representative during a claim or receive transparent answers to questions.  A relationship-focused agent prioritizes getting to get to know you, your risk tolerance and goals so that they may proceed with customized coverage selections accordingly.

If an agent is bothering and/or pestering you about whether you are ready to purchase coverage, that too is a red flag that the agent may not be an ideal fit for you. A take it-or- leave it deal rarely benefits the consumer and may indicate the agent is motivated by a sales competition for personal gain rather than advising of best interests. An Insurance agent has a fiduciary duty to their clients. Give yourself time to search for alternative options of coverage and have conversations about what coverage is important to you well before your renewal date. Initial conversations about 30-60 days in advance will ensure that decisions are not made under duress. Currently, there is much activity in the Insurance market. Proactive communication is key in preparing for significant rate increases, underwriting eligibility guideline updates and amended coverage endorsements.

While us agents do get a reputation for speaking in legalities and Insurance-eze, don’t hesitate to talk to your trusted agent about a scenario or situation that keeps you up at night. A qualified professional will be able to explain coverage, limits, and walk you through the scenario. There may still be a few ‘it depends’, however, conversation that focuses on coverage can tame your fears and set you in a secure direction. Afterall, the value of your policy and coverage should be the focus- keyword ‘YOUR’.