When Marina Grant was starting her communications company in 1984, her accountant recommended that she call a local insurance agent about commercial coverage. The agent ducked a personal meeting, saying he would fax her the pertinent information. Then he proceeded to stall with the faxes.
"We started asking, 'Doesn't he want our money?'" Grant recalls of that cold shoulder treatment. So she found an agency that's "responsive" to her DelMar, California, company and today gives it all the business for her nationwide, 100-employee company.
That too-busy agent who sloughed off Marina Grant might want to look at a report on women business owners and their attitude on insurance, conducted by Conning & Co., of Hartford, Connecticut. It concluded that women business operators approach the buying and servicing of insurance policies much differently from their male counterparts. Agents who recognize this difference will have a better chance of capturing sales from women entrepreneurs, who are forming businesses at a rate twice the national average.
So how do women look at insurance? Claude Fongemie, author of Conning's study, said that in general women place more value on insurance (and see it less like a commodity, which men tend to do). Women look for quality products, quality service and a quality relationship. Here are some highlights of that study:
* Women want to be taken seriously and not talked down to. Wouldn't we all? And couldn't we all learn from the example set by Marina Grant's first contact with an agent?
* Women-owned businesses are young and less complex. To that extent, they're probably interested in higher deductibles. They look for value in the product, but they're likely to be less price sensitive.
* They're price conscious. But price isn't a sole determinant. "They're looking for overall value as opposed to just a cheap price," said Fongemie.
* Women place a higher value on developing a strong relationship with their agency. They want a claims department that will respond quickly and an 800-number for long-distance service (speaking of distances, women also seem to prefer local agents over out-of-towners). Beth and Steven Block, owners of an agency in Orlando, Florida, that specializes in insuring day care centers, said women business owners who call in prefer to talk to them rather than employees.
* Women will share with others their experiences with vendors. Experts say that women will tend to pass along to business associates the names of people who have helped them and given them good products and services. Beware: They're just as likely to pass along bad experiences.
Women will ask a lot of questions. Call it inquisitive, but they tend to want gather more information on everything from insurance to office computers to bank loans. So be prepared.
"They're gonna hit you with questions you didn't even think about," said Steven Block. He said women may easily need more of your time, because they're processing information and making sure they're getting what they consider to be their money's worth.
So what do you get in exchange for a heavier commitment of your time and servicing of clients? How about someone who's willing not to niggle over nickles, will pass along your good deeds to others, and--important for anyone who's interested in renewals--will be more loyal.
"A woman-owned business is going to be a longer-term customer," said Fongemie.
Once they've found someone they can trust, relationships of 15 years or more aren't uncommon, said Joan Pollack, a senior vice president at CIGNA Property and Casualty. CIGNA thinks there are enough differences between male and female buying habits that it's studying whether to roll out a gender-specific marketing program. Cigna's yearly symposiums for women producers bring it a lot of information on how to sell to women business owners, says Pollack.
Seeing that more and more women are involved in buying automobiles, Pollack mentioned that car dealerships have done a lot to tweak their marketing programs. Is there any reason insurance companies shouldn't do the same when they see a surge in the numbers of women who are making the buying decisions?
Certainly there's room enough for agents to get over the attitude exemplified by a story that Pollack related. A couple approached an agent about insurance, and the woman handled all of the negotiations and details, relying on her husband only at the last moment to sign contracts and checks. Days later, the appreciative agent called with an invitation to a football game--for the husband.
In suburban Cleveland, Barry Becker, owner of Armorstone Insurance Services, said he has 10-15 women business owners as clients and has noticed some of the items the experts mentioned, such as a higher degree of inquisitiveness and the value they place on a relationship. As for price, it's "only one of the ingredients," said Becker. "They recognize that and they appreciate it."
Becker said many of his female clients came to him because they felt they were misled by another agent who couldn't deliver on a promise. That makes the trust factor very important, so Becker tries to build a rapport with his clients.
Becker said he hasn't yet tailored any special presentation to women-owned businesses. Nor has Doug Drake, another suburban Cleveland agent, who said women appear to be "a little more detail oriented, a little more inquisitive."
"If you spend the time and answer the questions and don't talk down to them, I think they appreciate it and they would be more loyal," said Drake of his dealings with women commercial clients.
--Stu Kuyper, regional president, Talbot Agency, Albuquerque, New Mexico
For his part, Stu Kuyper, a regional president of the Talbot Agency in Albuquerque, New Mexico, said he doesn't see much of a difference between a female and a male insurance buyer. If they own a business, they likely are what he sees as "A" type personalities, irrespective of gender.
"They want good service. They want good price," said Kuyper. From his perspective, "it doesn't matter whether you're a woman or a man. There are things that are important to make a decision."
Advice from a buyer
Valerie Perlowitz is the daughter of an insurance broker. She's also president and CEO of Reliable Integration Services, Inc., a computer networking firm in Dunn Loring, Virginia, with 50 full-time and 300 part-time employees. A Maryland firm serves as her insurance broker and advisory service.
"No business owner can know everything," said Perlowitz. But she has had definite ideas over the years about the insurance products she wants to offer her employees and can tell when she's getting the service she wants. She feels strongly that her employees should have access to a health insurance plan that allows them to choose their own doctor, so she's willing to sponsor an insurance plan that includes such coverage. She has an employee assistance plan and is in the process of rolling out a long-term disability policy.
"I don't think it's worthwhile to skimp on insurance because you can never tell what will happen," she said. Pretty good evidence that she's a willing buyer, but her first broker hardly treated her as such.
Perlowitz at first ran into the no-respect problem that vexed Marina Grant. "I'd call when we had issues," she said of her first broker. "I was lucky if I got a call back in a week--or two. That's no way to run a business."
Ironically, Perlowitz was getting snubbed by a woman-owned business (yet another irony: Conning & Co.'s study suggests that while male-owned businesses preferred to deal with males, women were indifferent to gender differences). So when another broker--a man--cold-called her, Perlowitz was ready to listen. She switched to the new broker and has been with him ever since, even though at times it may not present her with the cheapest way out.
"To me it's not the bottom dollar. It's the value," said Perlowitz.
Valerie Perlowitz, Marina Grant and countless other women business owners are proof positive that women prefer a hands-on approach to insurance. Now it's up to the agents and insurers to deliver quality product and service. True, women-owned businesses don't generate nearly as much premium income as their male counterparts, but on average their businesses are growing at a faster rate and presumably they'll therefore need more and more insurance. They have to buy it from someone. Will it be you? *
The author
Steve Dinnen is a journalist specializing in financial and insurance issues.
The National Foundation for Women Business Owners, together with Massachusetts Mutual Life Insurance Company, published a study this year of the buying habits of women-owned businesses in relation to retirement products. Here is what they found:
* As of 1996, there were nearly eight million women-owned businesses, generating total sales of almost $2.3 trillion.
* In 1996, women-owned businesses accounted for one-third of all businesses in the United States and one-quarter of its employment.
* Between 1987 and 1996, the number of women-owned businesses increased by 78%--almost twice the rate for overall business growth.
* The top growth industries for women-owned businesses during this period were construction, wholesale trade, transportation and communication, agribusiness, and manufacturing.
* Women business owners tend to consult with a wider variety of sources when it comes to making buying decisions.
* Women business owners take a more proactive role than men in adopting new technology for growth.
©COPYRIGHT: The Rough Notes Magazine, 1998