Wikipedia defines commodity as "a term with distinct meanings in business and in Marxian political economy. For the former, it is a largely homogeneous product, whereas for the latter, it refers generically to wares offered for exchange." A homogeneous product, according to The Random House Dictionary means "composed of parts all of the same kind."
GEICO wants the insurance buying public to believe that all insurance is the same. That what you receive from one company is the same as another. However, each insurance company offers its own unique options, pricing, and coverages for the customer to choose from. Insurance is not the same from every company.
GEICO and similar companies do not value the advice and counsel of an insurance agent. They assume that all situation faced by their policyholders can be handled online or by phone. Face to face relationships are not important. GEICO's advertising states you can save money by going direct, implying that bypassing the agent saves money. Have you ever wondered if the savings for bypassing an agent are being spent on advertising? Does any insurance company advertise as much as GEICO? Did you ever consider how much it must have cost to train a Gecko to talk or drive a car?
I believe that a local agent adds value to the insurance contract; he is a licensed insurance professional. He meets the customer; he gets to know the customer and the customer's needs. The agent is a trusted advisor who helps identify other areas that may need additional forms of insurance. The agent is a member of the local community and if the customer has a problem, the insured can meet with the agent face to face.
Notice in this post I have not distinguished between "types" of agents; independent agents, direct writers, captive agents. Regardless of the form, they all add value.
Don't be short changed; get your moneys worth and work with a local insurance agent for your insurance needs.
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3 comments:
Jeff, I have to agree with you....agents are the only way to put up with insurance companies. They, at the least, give one a sounding board for discussion.
Jeff,
There used to be "career agents" -- you know, the agent that worked for one insurance company, and only pushed & sold the policies of that company. As an independant agent, I assume you cover a variety of policies that can help you meet the customer's need, correct? My question is... as a consumer, am I better to work with an independant insurance agent?
The Independent Agent vs. the Captive Agent will be a discussion I am sure we will have many times on this blog. For now, it will suffice to say that it is important that you work with an agent that is knowledgable, an agent who cares about you, and an agent you like and trust as a person, regardless whether he in an independent or captive agent.
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