Insurance Is Sold on Relationships. Claims Are Settled on Facts.

Insurance is sold on relationships. But claims are settled on facts.

For a long time, insurance was primarily a relationship business. “Who sold me the policy?” mattered almost as much as “Which policy did I buy?” Today, I think the equation has changed.

Relationship may open the door. Knowledge and trust have to keep it open.

I recently came across two cases that stayed with me. A friend believed his health insurance had been arranged by his Wealth Advisory firm. When we looked at the policy, it was actually booked under the agency code of the wife of his Relationship Manager. The wealth advisory firm itself was unaware.

More concerning were some incorrect declarations in the proposal. These may remain invisible today, but could become extremely important when a claim is made.

In another case, a client bought motor insurance for his Mercedes through the dealership because he wanted the comfort of a seamless claims experience.

The policy, however, was issued under an individual agent’s code, someone who happened to be a friend of the dealership’s Floor Manager. The policy existed. The premium was paid. Everything looked perfectly normal.

But the expectation created in the customer's mind was very different from the reality. And this, to me, is the fundamental challenge in insurance.

We don't really sell a product. We sell a promise.

A piece of paper promises that, when an unexpected financial loss happens, someone will stand beside you. That promise is invisible when the policy is bought. It becomes very visible when the claim happens.

That is why mis-selling, incomplete disclosures or casual commitments are not small issues in our business. They can come back years later, precisely when the customer is most vulnerable.

I have always believed that in insurance, trust is not created by where the policy is sold. It is created by how honestly it is sold. Because the customer may forget who explained the policy. But at claim time, he will never forget who stood by what they promised.

Story sells. Fact tells. But trust is what survives the claim.

Here is a short survey which aims to understand your current Insurance Experience and gather your perspective on a more streamlined , consultative approach.

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