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Consumers Still Need the Expertise of Product Specialists

Reason Magazine has run an article with surprising news – there is still room in the marketplace for small business operators!

It’s encouraging to hear that small retail stores can compete with online giants like Amazon. I think it’s true that consumers need and want specialized expertise to get the most value out of the products they purchase.

This is certainly true in the life insurance marketplace. For example, people who pose a higher underwriting risk due to their medical history, need the guidance of a broker specializing in these cases to get the best rate available.  

In addition, life insurance products have become very complicated. The benefits and features of indexed universal life are significantly different from guaranteed universal life, whole life, and term insurance. Also, the newest generation of products have expanded living benefits for critical illness and long-term care. Potential applicants need the expertise of a product specialist to feel comfortable and confident buying any one of these policies.

From the article:
“How is that store able to compete against Amazon, which sells ant farms at a lower price point? The key is that it bridges the gap between online and offline life. When you order a terrarium from a seller who is clearly obsessed with his own product, you’re buying that person’s expert knowledge in addition to his unique wares. Contrast that experience with buying an ant farm on Amazon, where the expert is replaced with an algorithm and a few hundred reviews from random strangers. Amazon may tell you which terrarium was bought by the most people and how they felt about that purchase at a moment in time, but it’s a poor substitute for true expertise.”