Insurance brokers need to think of themselves as more than salespeople and instead focus on risk advice, according to an industry expert.
The broking industry has long spoken of its desire to be seen as more than salesmen for insurance, with major brokers and broker networks calling for a more holistic approach to advice.
Sharanjit Paddam, principal at Deloitte Actuaries & Consultants, said that if brokers look beyond themselves as salespeople both they and clients will see the benefits.
Paddam used the example of Kodak as a warning to brokers. The camera company was one of the first to discover digital technology in cameras but relied heavily on film sales and lost sight of their purpose to clients.
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“Brokers need to think beyond themselves as salesmen for insurance, like selling your next policy, and to go back to the ‘why’ and what is the real thing that they’re selling,” Paddam told Insurance Business.
“I think the real thing that they’re selling is risk management. They’re selling advice … to consumers about how to be safe and how to be protected and what their risks are.”
Paddam stressed that when brokers focus on risks facing businesses other issues come into clearer focus such as client education. This helps clients understand the value of using a broker and ensures that the broker’s place in the insurance buying cycle remains secure, no matter the outside influence.
“But if they [brokers] see their role as more about selling as much as possible, then the customers won’t appreciate what they’ve bought,” Paddam concluded.
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