Push Through The Pains To Get Those Rewards

InsuranceNewsNet

By John Pojeta

I recently attended a conference for Nationwide agents, and the focal point of nearly all conversations, official and unofficial, was the transition to becoming independent. In a few months, Nationwide will officially rescind exclusivity for all advisors and agents, treating every individual in their network as if they were an independent business.

This is a significant change for Nationwide and for the industry as a whole. As there is with any change, there is turmoil.

Although about a third of advisors (based on my impressions from the conference) are embracing the new reality and laying the groundwork to capitalize on the opportunity of going independent, the rest seemed anxious and scared. The market shift toward the commoditization of consumer auto and home coverage has meant a decline in revenue for everyone involved. For some stakeholders, Nationwide’s move is a threat instead of an opportunity.

The stress of the situation is understandable, but regardless of your perspective on the situation, the only way forward is to find a way to succeed under the new conditions. For my part, I see this as a good thing for advisors and agents as it uncaps growth potential and opens new doors, but you have to push through the growing pains to get those rewards.

To find new success in this changing industry, reimagine yourself as the leader of your clients’ success. When home and auto policies are commodities — bought with a few clicks and processed entirely by computer — the value you bring clients must go deeper. In practice, you are likely already going beyond the basics of generating policies, acting as a true advisor for your clients. They come to you for advice, and you guide them through the difficult decisions in their lives.

Lean into that role.

The next generation of advising will be about more than products and services. What you sell will always be a factor, but how you sell, and how you approach your engagements with clients will be the differentiator. Today, leading clients where they need to go to find success is a necessity.

Too often, however, advisors and agents do not see themselves as leaders in this way. We liked the old model of the phone ringing, of customers coming to us ready to buy. In this new environment, whoever steps out and leads, providing return on investment to clients and building a larger platform of thought leadership, will close more business and continue to grow. This is the shift from being a vendor to being a partner, and partners behave very differently from the classic business model that many advisors still follow.

If you are facing this challenge in your own business — directly as a member of the Nationwide ecosystem or indirectly due to overall industry trends — evaluate your business. Look for the aspects of your service that are unique to you. Who are your best clients? How do you help them? How do you make a difference for your clients beyond the policies you write?

When you look at your business with that kind of lens, you can uncover opportunities within your organization that can become the seeds of your future. For those seeds to grow, you need to lead. You need to lead your clients to their success, and you need to be a leader in your industry.

John Pojeta is the vice president of business development at The PT Services Group. He previously owned and operated an Ameriprise Financial Services franchise for 16 years. John may be contacted at [email protected].