Value vs. Price: Winning the Insurance Battle

In the insurance world, where the "bottom line" often takes the spotlight, it's no surprise that customers are often laser-focused on the price tag. So, how do you stand out and communicate the true worth of your policies when everyone else in the insurance business is talking dollars and cents?

Let's find out. 

How To Sell Value in Insurance

Selling customers on value in the insurance industry is about meeting their needs and focusing on what's included in the policy price. Highlight tangible benefits, like death benefits for family members after an employee dies in a workplace accident, and intangible ones, like superior customer service. 

Here's a closer look at how your sales strategy can emphasize the value your policies bring to the table.  

1. Listen to Clients' Needs and Concerns

You'll find this point in almost every conversation on how to sell anything at all. 

Why? 

Because the way you create, frame, and present your offer depends on it. There are numerous features and benefits you can highlight about your insurance products and services. 

Instead of overloading your customers with all of them, you want to cherry-pick the ones that matter the most to them based on their needs and desires.

2. Give Context and Clarity

Instead of dropping the price on the table and letting it sit there by itself, surround it with context. Transition the conversation from mere cost to the array of coverage it entails. 

You can spend time explaining what the policy includes in clear, relatable terms. 

Break down how much protection they're getting for the price as part of the sales process and what it'll save them in the long run if they need to make a claim. 

3. Emphasize an Easy Claims Process

If you can't beat competitors on price, you can certainly beat them on customer service. And one of the most important opportunities to outshine competitors is how you handle claims. 

Customers make claims after experiencing a loss. They may be coming to grips with recent events and recovering emotionally, such as from a worker who gets hurt or dies on the job. 

Having an easy way to make claims can keep from adding to the frustration. Maintaining open communication with the involved parties when there are bumps in the payout process can also foster a positive experience with your insurance agency. Clients will know what's going on and why, and won't tie themselves in knots with tons of questions.

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4. Underscore Added Benefits

Everyone loves getting more than they paid for. Detail those added perks that come with your policies—things like 24/7 customer support, online account management, or a network of trusted service providers. 

These perks add sprinkles of value that go beyond the policy itself. They're differentiators between you and your competitors and can make your offer more appealing.

Bonus tip: Hourly is a big perk for insureds. The platform not only runs their payroll in seconds, but it also uses that data to calculate accurate workers' comp premiums. So, those workers' comp audit bills? Yeah, now they're close to a big fat zero!

5. Discuss Real-Life Experiences with Your Agency

Instead of getting blue-faced trying to explain all that a policy with you offers, take a breath and let other customers do the talking. 

Leverage the power of stories and real-life examples in your insurance marketing to back up your value-based selling approach. 

Share case studies of past clients who have benefitted from the policies you offer or use client testimonials to show customer loyalty and positive experiences others have had with your agency. 

This social proof can go a long way in convincing potential clients that you deliver on your promises and are truly worth their investment.

What Are Customers Looking for in an Insurance Company?

Customers want a balance between cost and the confidence that their insurance company will be there for them when they need it the most. Here's what this means for independent agents and brokers. 

Trustworthiness

A lot of people want reliable and reputable insurance companies that will hold up their end of the bargain. To convey trustworthiness, promptly follow up on your client's questions throughout the decision-making process, provide them with clear information, and focus on insurance packages that truly address their needs and desires. 

Excellent Customer Service

The way your company treats a customer can make or break their experience. Provide personalized and responsive customer service to ensure that policyholders always feel valued. This means:

• Be patient with their questions, whether it's one or many. 
• Be quick to respond to those questions and issues that arise. Think about phone wait times, email turnaround times, and how often they must repeat themselves to get answers or help. 
• Actively listen when they talk to you so you understand their needs and how you can fill the gap.
• Do the extra work to get them the most competitive price possible (and tell them about it so they know your efforts!)  
• Explain the policy details thoroughly and in layman's terms so prospects know what they're getting. No one wants to feel like they're being tricked into more coverage than they need.

Excellent customer service goes hand-in-hand with trust and feeling like the insurance company won't disappear when an insured needs help.

Comprehensive Coverage

Customers are looking for insurance coverage that meets their specific needs. This might involve offering competitive packages that cover a wide range of possibilities, from standard policies to more tailored options. 

Be sure to take the time and listen to your customers' concerns to provide them with a coverage plan that suits their business or personal goals and gives them financial peace of mind.

Competitive Pricing

While price shouldn't be the only factor, it does play a crucial role in the decision-making process. As an insurance agent, aim to provide high-value coverage at competitive prices. 

This means balancing cost, coverage, and service to offer a well-rounded product that appeals to potential customers. You'll want to avoid being a salesperson who oversells. Be honest about pricing, discounts, and benefits.

How Do You Convince a Customer to Buy an Insurance Policy?

Have them see the value of your offer, and there'll be no need for convincing. Convincing sounds forceful, like you're going against their will. 

But you don't need to convince someone to buy a Ferrari for $10. The value proposition is so high that only fools would pass it up. You want to do the same with your services. 

Of course, this doesn't mean you have to sell policies at rock-bottom prices. Instead, it means you have to sell more than just a policy at $XX; you have to sell prospects on the overall value using the abovementioned tactics.  

The Secret: Contextualize the Price

The secret to shifting your customer's focus from price to value is to customize their coverage and contextualize the price. 

You could describe how the policy meets their unique needs, includes benefits–like a vast network of service providers that keep premiums down—and has helped other customers like them. 

You'll want to target the things that matter most to them, whether that's comprehensive coverage, trustworthiness, responsiveness, or something else. 

You'll be surprised at how many customers are willing to pay a little more when they see all they get.