“Back to Basics” – it’s a phrase I’ve heard several times as we work our way through challenging insurance markets and uncertain economic times during the pandemic. It is something my former basketball coaches would say after a bad game or loss: “back to the basics.” My coaches defined it as a statement of simplification – returning mentally and physically to what made our team good. There were and are a lot of pieces that can make a team or individual athlete great. But while my highly competitive athletic days are over, what value, if any, can this phrase bring to me now and how does this apply to the insurance industry as a whole?
In the insurance market, it is very easy to get lost in the weeds or swept away digging into a coverage line. While it is important to be thorough, up-to-date, and a knowledgeable resource, it is possible to let the information and data blur one’s true purpose: serving the client and sustaining/developing relationships.
Basics of Insurance
In my opinion, the basics of insurance can be boiled down to providing coverage and developing relationships. The first basic point is the one that defines the industry. Put extremely simply- providing financial safety so that a client is whole if a loss occurs. Point number two is the one that is many times missed or forgotten in the fog of premium negotiations, market research, quick turnaround coverage strategies, inexperience, information overload, and more. When it works as it should, the beautiful thing about the insurance industry, despite market or economic conditions, is the constant care and service provided to the insured. This along with the relationships formed between the insurer, agent, and client, is the reason I became hooked on the independent insurance model.
Relationships are Priceless
No matter what role you have in the risk management/insurance process, a solid relationship is important and priceless. As anyone would attest, positive relationships are built over time. Surely there are factors that can strengthen or weaken a relationship at any point, but solid mutually beneficial relationships cannot be rushed. Never take for granted the importance of the everyday interactions brokers have with clients (new or someone who has been a client for years), insurance company associates have with agencies, and insurance company associates have with insureds. Each interaction, no matter where in the process or between whom, is an opportunity to go “back to the basics”.
By providing excellent service, reliable coverage, and committing to nurture and strengthen relationships, the insurance industry can thrive in difficult markets and hard economic times. Diversified Insurance Group would love to help you with your insurance needs. You can contact us here.
This article was originally posted on LinkedIn by JT Schlembach. You can find it here.