When people shop for insurance, they rarely know exactly what they need. Some are buying their first home. Others are adding a teenage driver, opening a small business, preparing for retirement or protecting a growing family. Every situation is different, which is why insurance is never one-size-fits-all.
As the owner of a family-owned independent insurance agency, I have seen that firsthand while serving Greater Boston for decades. We help families and businesses find coverage that fits their needs. Today, finding the right insurance agency often begins long before someone picks up the phone or walks through the door.
Unlike the largest national insurance companies, independent agencies do not have multimillion-dollar television campaigns or household-name recognition. Years ago, reaching new customers often meant relying on word of mouth or expensive advertising that many local businesses simply could not afford.
Today, search engines, websites, social media and other digital tools have helped level that playing field. They make it easier for people to research their options and discover trusted local businesses when they are looking for homeowners, auto, life or business insurance.
Finding the right coverage often starts with research. Whether someone is buying a first home or looking to protect a new business, we want them to find educational articles, videos and other resources that answer their questions before they ever speak with one of our agents. Those same digital tools help us understand what information consumers find useful so we can continue improving it.
That is why I have been following the consumer privacy legislation now before a House-Senate conference committee on Beacon Hill. As lawmakers work through the differences between the two bills, I hope they strike the right balance by protecting consumers while preserving the tools local businesses and their customers rely on every day.
Like our customers, I support strong privacy protections. People should have meaningful transparency and control over their personal information. But good privacy laws should also reflect how people actually shop, compare options and make decisions.
People often begin by researching, comparing options, reading reviews and asking questions before deciding who they trust. The digital experience should work much the same way.
One issue before the conference committee is “data minimization,” or rules governing when businesses may use customer information. One version of the bill would adopt a restrictive standard that could limit how information is used before a consumer has requested a specific product or service.
That may sound like a straightforward way to strengthen privacy, but it can overlook how people actually shop. Consumers often discover businesses and services while they are still researching their options. Privacy laws should protect personal information without making it harder for people to find useful information or connect with businesses that can meet their needs.
The effects can extend beyond the businesses directly covered by the law. Even when small businesses are exempt, they still depend on advertising platforms, software providers, publishers and other digital services that may be subject to the legislation. If those tools become more expensive or less effective, local businesses and their customers can feel the impact.
This conversation matters well beyond insurance. We serve local entrepreneurs, restaurants, contractors and family businesses throughout our community. Like us, they rely on affordable digital tools to compete with much larger companies and connect with customers looking for what they offer.
As the conference committee completes its work, I hope lawmakers remember that consumer privacy and small-business success are not competing goals. Massachusetts can protect personal information while preserving the digital tools that help people research their options, find trusted local businesses and make informed decisions for their families.
Carlos Vargas, owner of Vargas & Vargas Insurance