UnBroken: a carrier call-to-action

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The classic insurtech narrative revolves around traditional insurance as "broken.”

And they're right.

Traditional insurance is broken.

How can I say this? What's my rationale? Where's my loyalty?

Consumers don't care about traditional insurance brands.

FACT.

They're apathetic at best, actively dissident at worst.

Except for USAA, State Farm and GEICO. People love these insurance brands.

Why?

Each has a clear, direct and engaging brand. Each brand takes risks to connect on a deeper level with the audience they serve.

These companies have memorable brand stories that are relatable to their target audience and that's why they win.

• USAA = Military
• State Farm = Family & Consistency
• GEICO = Easy, Fast & Cheap

Why is the independent agency channel’s brand story so fractured?

Traditional insurance carriers ceded control of brand message to independent agents a long time ago. Using the excuse, "This is why we pay commissions," as justification.

In return, independent agents acted as distribution partners and frontline underwriters, leveraging their own local brand to build strong relationships with consumers.

While 30 years ago this made complete sense, today it does not.

As one insurance carrier executive shared with me last week, "While the agent might sell them the policy, if something goes wrong, they get mad at us."

Insurance carriers must take ownership of their brand.

In the digital marketplace, relying solely on independent agents will never provide the level of brand awareness traditional carriers need to thrive.

Thrive is the keyword.

Survive, maybe, but to thrive in a world where Google, Facebook and Amazon know more about your customers' needs than we do, traditional branding methodology has become antiquated.

THE OPPORTUNITY

Client acquisition today is easier than ever before. Seriously. If you need help DM me or click here.

The real game is retention.

Thriving organizations over the next 10 years will be those brands which figure out how to profitably keep business on the books.

Insurance consumers are so desperate to do business with a brand they trust, acquisition will always be easy, and they'll always be willing to try someone new until they find a brand they can trust.

Once they do, they'll never want to switch. Shoppers only shop because they're unhappy with and/or disconnected from their current provider.

No one enjoys shopping for their insurance.

Winning at retention is how traditional insurance becomes "Unbroken."

Have you ever tried to quote someone with USAA?

"Hey, can I take a look at your insurance?"

"No, I'm good, I have USAA."

That's it. That's the whole conversation. They expect you, as an insurance professional, to understand that because they have USAA, they have no need for an insurance review.

Back when I was an agent, I heard similar statements for State Farm and GEICO as well.

When's the last time someone said that about your brand?

RISK AND BRANDING

Building a brand involves risk.

As an industry, we have no taste for risk.

We're too successful.

We're too comfortable.

We're too good at playing the current game.

Building a true brand, a brand with substance, a brand with meaning, is risky.

You have to stand for something. You have to believe in serendipity. You have to believe in the people you claim to serve.

And that brand will NOT be built on TV or in print or through banner ads.

Over the next three to five years, the winning insurance industry brands will transition from TV to digital.

Unfortunately, right now, everyone's stock is up. Which means most traditional insurance carrier boardrooms are going to become even more complacent.

Why make the transition to brand building and digital when your stock value has quadrupled since 2009?

THE RUB

You have to believe.

Most don't, most won't, most can't believe in anything other than the way it's always been done.

Herein lies the opportunity for those with vision, desire and belief to invest in their brand.

Consumer behavior is changing faster than ever.

Your choice is simple. Get on board now, stay relevant, set yourself up to thrive.

Or you can bury your head in the sand, keep pushing TV and digital banner ads and fade off into obscurity.

What will you choose?

Thank you,

Ryan Hanley

P.S. If you're looking to profitably grow your commercial insurance business then I'd encourage you to learn more about Bold Penguin.

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