As the beginning of the New Year has arrived we find ourselves reflecting on both the good and bad things of the past year. With this, it’s important that we create lists of the bad things in our year and try our best to find “resolutions” to prevent them from happening again in this New Year. The first step of solving the problem is of course to identify the problem.
1. PPACA
The number one issue for all insurance companies this past year has been the PPACA. There were many technical glitches and errors, an unclear role for agents and an annual enrollment process that hasn’t been direct with the people implementing it and the list goes on and on, it seems. Hopefully this year they figure out a way to tie it all together to actually make sense.
2. No Demand
With the newest Affordable Care Act (Obamacare) making its big boom in America the demand for luxurious insurance doesn’t really exist right now. Unfortunately with the new Affordable Care Act we saw everyone’s costs increase, which means less money to spend on life insurance and/or disability. In general the insurance market is growing, rapidly at that. However due to the economic strains and lack of client experience there are many potentials clients that don’t see investing in “less important” insurance as a possibility for their budget.
3. Insurance Has Become a Commodity
Each insurance company is constantly growing, changing and adapting to what is new and “hip” and even the things that are necessary. Before long customers are asking, “Why should I pay more for your insurance? It’s all the same.” It’s making it difficult for insurance companies to keep up with clients as they work diligently giving reasons as to WHY they should use their company.
4. Too Many Victims are at Risk
Unfortunately insurance companies have officially undergone being stereotyped. They are seen as vicious salesmen out to make a buck from customers that care little to none about helping new clients find the plan that’s best for them. Everyone thinks they’re falling victim to the sales person.
5. Pressure
The pressure to produce never leaves the side of a salesman. Afterall, most insurance sales people are making a living off of their commission and sales. It’s difficult to find the “right” price for a client and still manage to establish trust through the customer. If you’re selling based on price and not on being helpful with products and services then you’re looking to fail.
