Why Insurance Intermediaries Should Embrace Consulting Over Selling

[This article was generated by ChatGPT and has been edited by the Surer team for clarity, readability and context.]

In the ever-evolving landscape of the insurance industry in Singapore, the traditional approach of hardcore selling is losing its shine.

As the market matures and consumer expectations shift, insurance intermediaries must pivot from merely pushing products to adopting a consultative approach.

This change isn’t just a trend; it’s a necessity driven by the demand for more personalised, trust-based relationships.

Here’s why consulting over selling is the future for insurance intermediaries in Singapore.

Building Trust and Long-Term Relationships

In today’s digital age, consumers are more informed than ever. With a few clicks, they can compare policies, read reviews, and even access detailed information about insurance products. This wealth of information means that potential clients are often skeptical of aggressive sales tactics. Instead, they seek trusted advisors who understand their unique needs and can guide them towards the best solutions.

A consultative approach fosters trust and builds long-term relationships. By acting as a consultant, an insurance intermediary can take the time to understand the client’s personal and financial situation, goals, and risk tolerance. This deeper understanding allows for tailored advice that genuinely benefits the client, making them more likely to stay loyal and refer others.

Enhancing Customer Experience

In a competitive market like Singapore, customer experience is a key differentiator. According to a study by PwC, 73% of all people point to customer experience as an important factor in their purchasing decisions. By focusing on consulting rather than selling, intermediaries can significantly enhance the customer experience. This approach involves listening to clients, providing valuable insights, and being available to answer questions, which all contribute to a positive experience.

Consulting also means ongoing support. Insurance needs can change over time, and having an intermediary who stays in touch and provides continuous advice can be invaluable. This continuous engagement helps clients feel cared for and valued, further cementing their loyalty.

Addressing Complex Needs

Modern life is complex, and so are the insurance needs that come with it. From health and life insurance to retirement planning and wealth management, clients often require a range of products that need to be carefully coordinated. A consultative approach allows intermediaries to address these complexities holistically.

By understanding the full picture, consultants can recommend combinations of products that work together to provide comprehensive coverage and financial security. This holistic view is something that cannot be achieved through a simple sales pitch, which often focuses on individual products rather than the client’s overall needs.

Adapting to Regulatory Changes

The regulatory landscape in Singapore is continuously evolving, with a strong focus on protecting consumers. The Monetary Authority of Singapore (MAS) has implemented various measures to ensure that intermediaries act in the best interest of their clients. A consultative approach aligns perfectly with these regulations, as it emphasizes understanding and meeting clients’ needs over merely making a sale.

By adopting a consultative mindset, intermediaries can stay ahead of regulatory requirements and avoid potential pitfalls. This not only protects their clients but also their own business from regulatory risks.

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The shift from selling to consulting is not just beneficial but essential for insurance intermediaries in Singapore.

So, to all the insurance intermediaries out there: put away those hardcore sales scripts and start focusing on what truly matters – your clients’ needs.

After all, in the words of Zig Ziglar, “You don’t build a business. You build people, and then people build the business.”

Embrace consulting, and watch your business grow.