An Alternative Universe

​In the famous book Coraline, by Neil Gaiman, a young girl steps through a door into a different universe. Lewis Carroll had a different take in Alice in Wonderland. Jefferson Airplane had a different version of Alice in Wonderland and a very different take on an alternative universe in their famous song, “White Rabbit.”

While teaching a class a few weeks ago, I felt as though I’d walked through one of those doors. I realized my universe was not the participants’ universe. In the producers’ universe, only the portions of contracts they liked applied. They simply ignored the portions of the contracts they disliked.

An alternate universe may be necessary as a bridge between reality and the act of selling insurance to people who do not want to buy it. I’m not really sure why anyone tries so hard to sell people something they absolutely do not want to buy.

Most consumers do not understand what they are buying and do not want to spend the time to learn about it. Many deeply distrust insurance because they know they don’t know enough about what they are buying, and they believe people running insurance companies are unethical (with some reason for specific companies). If they had their choice, they would not buy insurance but are forced by the government (mainly auto and workers’ compensation), banks (all property), business partners (contractors requiring sub-contractors to carry insurance), and customers (who demand suppliers to prove they have insurance in case something goes wrong).

Selling an expensive ethereal financial product to someone for all the reasons above requires, in some producers’ minds, creating an alternative universe. Producers do this in several ways, and if measured only by sales success, unreality works for many. The fictional elements commonly include:

• No need to read the commercial client’s contracts to know what coverage they need. That’s just an unnecessary complication. Furthermore, it only matters if there is a claim involving the contract's stipulations, and that kind of claim is unlikely.

• No need to abide by the agency’s carriers’ contracts. The contracts contain multiple hindrances to making sales, and most of the time, if ignored, nothing bad happens. And maybe if something bad does happen, the producer believes they can successfully ask for forgiveness. Items to ignore, in particular:

  • Ignore the lack of binding authority. Telling a prospect the producer cannot bind makes the producer appear less powerful. That’s a bad image, so it’s better to tell them, “I’ll get that bound today!”

  • Ignore that they are not claims adjusters and confidently tell clients their claim is or is not covered. Or tell clients they don’t need to turn in claims, and do not advise clients the agency is contractually an agent of the company specific to claims and has a clear duty to report all claims and losses of which the agency is aware.

    
    

Independent agents are legally in an extremely unusual position: they are a dual agent to both the carrier and the insured, but not exactly at the same nanosecond. This legal theory of duality is the only reason independent agents can exist. This means independent agents cannot portray themselves as representing only the insured. That is not honest advertising, and if disclosed, it makes sales even harder. So why disclose it?

• Keep talking because if you talk enough, even if it’s nonsensical, the client will eventually agree with you.

• Likewise, there’s no need to listen. That just opens the door for questions.

• Absolutely pretend insureds know what they need and only offer them quotes for exactly what they request. Artificial intelligence excels at this, so it must be the correct way.

• Definitely do not ask too many questions about what the commercial insured does or how they operate. A producer does not want to know too much. The less they know about the risk, the better. Too much knowledge is an impediment. Ignorance is a much safer path.

  
  

This alternate universe can lead to sales success. Being able to convince someone who does not trust insurance and does not want to buy insurance that you are all-powerful and knowledgeable, while your own knowledge is marginally more than the customer’s, is a great strength. It works as many great cons do. Trust is everything.

But I do not know why projecting fantastical power and knowledge is key to creating that trust. Would it not be even more powerful to be honest with clients and be more knowledgeable than competitors?

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NOTE: The information provided herein is intended for educational and informational purposes only and it represents only the views of the authors. It is not a recommendation that a particular course of action be followed. Burand Insurance Education, Burand & Associates, LLC and Chris Burand assume, and will have, no responsibility for liability or damage which may result from the use of any of this information.

None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this article. Regulated individuals/entities should also ensure that they comply with all applicable laws, rules, and regulations.