The national conversation around “insurance leads”

Just like about everything else in the world of insurance sales, the business of lead-generation is in transition, writes NDOI’s Lynne Wallace

by Lynne Wallace/Contributor

Across the nation, insurance agents are looking for "leads"—the opportunity to connect with someone who wants or needs the type of insurance they sell. However, like just about everything else in the world of insurance sales, the business of lead-generation is in transition. The process, definition and expectations have radically changed. If you are in the market for insurance leads, you'll want to make sure you understand what you are buying.

Traditionally, leads have been generated by telemarketers who cold-call (contacting people who aren't expecting their call) to see if they are interested in getting "quotes" for their insurance renewal. The offer is "better coverage at a lower price," generally based on some greater expertise or special program exclusive to the competing agent/agency.

Shift to today. A technology team casts a net over the internet to capture a need that a consumer is putting out there. Often this need is very specific and comes with no immediate potential for an agent switch. It's just someone who's looking for help related to a specific area of insurance. Let's call it a cyber-lead.

Each approach has a different model and a completely different path to conversion.

Generally the traditional-lead begins with a phone call, a brief introduction, and the setting of an in-person meeting to discuss needs and services and to pick up insurance policies to be reviewed. If all goes well, markets are then selected and the bidding begins. Top agents often bypass the bid part and just pick up an agent-of-record letter and become the agent on the account. Sounds simple, but the process of breaking an existing agent relationship is frequently difficult and can take several months or years to accomplish.

By contrast, cyber-leads are typically generated from time-deprived consumers who are most comfortable transacting in the online world. They show up asking us to help them in a specific way. They want us to do something for them now. It's a "Show me fast, deep knowledge, a great solution, and a simpler process...and you'll likely earn a bigger opportunity with me." The path here requires us to focus on what the consumer needs/wants now and use it to make ourselves indispensable going forward.

Physical meetings are also perceived quite differently under the two models. Cyber prospects expect us to bring results comfortably online, on the phone or through virtual meetings first. Physical meetings may seem too personal, expensive or premature. Cyber prospects may perceive someone willing to drive several hours for an introductory meeting to have time on his/her hands or to be old-school. Physical meetings are reserved for solidifying relationships once a deal is done, or for in depth collaboration with multiple people.

Technology demonstrations should be done by virtual meeting, a meeting that includes a camera so the prospect can see the agent presenting. Agents who try to demonstrate a technology solution at a physical meeting (bringing a laptop or using the prospects desktop), often unknowingly end up forcing themselves into the prospect's personal space when the relationship is likely not ready for that. Virtual meetings are clearer, more comfortable, and offer equal participation.

At the end of the day, either lead model (traditional or cyber) can produce a fantastic result... it's just no longer a "one-size-fits-all" world.

Lynne Wallace is the CEO and president of VANTREO Insurance Brokerage and co-founder of NDOI, the National Directory of Insurance.

Keep up with the latest news and events

Join our mailing list, it’s free!