Anyone who has made a major purchase is familiar with the term “buyer’s remorse.” Although the sentiment may vary, it applies to regret at having made the purchase or the feeling that we overpaid for it. Sometimes, it can take a different form: A friend buys the same product or a nearly identical one for less money, for example. Hence, we are left feeling remorseful over having made the purchase.
There is an opposite feeling regarding not having purchased an item when we were considering buying it, such as a particular stock that jumped in value (think Nvidia in 2023) as one example. In this case, the feeling centers on the relative bargain we passed up by not following our instincts. To that end, is there a common phrase that applies? In a sense, it is the opposite of buyer’s remorse.
It turns out that there isn’t an exact opposite phrase that applies, but there are three phrases that ChatGPT suggested:
> Missed Opportunity: This phrase directly captures the feeling of regret for not taking advantage of a chance to buy something that later became more valuable.
> Regretful Avoidance: While less common, this term highlights the action of avoiding a purchase and the subsequent regret.
> Hindsight Regret: This phrase emphasizes the feeling of regret that arises from looking back at a decision with the benefit of hindsight.
Now let’s apply this concept to the marketing of insurance. When it comes to describing the way many consumers eventually feel about their experience with insurance, hindsight regret seems the best way to describe the feeling. Why? As any good insurance agent, claims adjuster, or underwriter can tell you, most consumers don’t feel bad about not buying insurance — until they find out they don’t have adequate coverage. The reality is that hindsight regret usually occurs when someone has already experienced the loss — fire, accident or lawsuit (liability).
The insurance marketing objective is to create a call to action for someone to engage with an independent agent. The interaction can be through a telephone call, video meeting, online chat, email or in person. Consumers are increasingly price-conscious; however, agents should avoid using price as bait. There is already enough advertising commoditizing insurance as merely a transaction instead of representing it as a contract to transfer risk. Since independent agents can provide a choice of coverages and their knowledge, touting those advantages in their messaging plays to their competitive advantage.
Insurance provides an intangible benefit that someone hopes they never need, so how do you elevate the necessity in the consumer’s eyes to purchase the appropriate coverage? The answer is to create compelling content across social media that educates people in an interesting and relevant way regarding the risk of not purchasing the right insurance. Agents should embrace their role as educators and sharpen their marketing focus on relevant (and seasonal) information that will resonate.
For example, this past year has (unfortunately) generated examples of atypical weather resulting in devastation in areas considered safe” from severe storms. Despite unprecedented flooding in western North Carolina and the increasing frequency of wildfire throughout the U.S. and other perils, many consumers still believe that it won’t happen to them.
Some consumers in catastrophe-prone areas like coastal Florida are self-insuring their homeowners coverage (presumably because their home is paid off and flood insurance is not required). Although they believe that in the long run, this may be less expensive than having a homeowners policy with a large deductible, the problem is that their focus is on property coverage. Yet, without liability coverage, they can face a larger exposure that they can’t afford to ignore.
Independent agents who fail to focus on educating consumers regarding their risk exposures may also miss an opportunity to build a relationship, leading to hindsight regret. Why? Because they failed to take advantage of the opportunity to demonstrate the agency’s expertise and ability to help their customers solve their risk exposures, and someone else eventually did!
