So I was in a conversation with an insurance broker who is working on some really cool stuff (actually not talking to myself this time). We were back and forth on several things one being complaints he has heard from banks about how expensive it is to acquire customers. If you can politely giggle, I did and informed him that acquiring customers should/could cost $20 or less.
Here are a couple of favorites from the week. Both happen to be tied to Amazon and both pretty perfectly show the future of personal insurance.
So I was in a moment of frustration and tweeted this out;
And I meant it. Let me elaborate. I read Tony Hsieh’s Delivering Happiness and really, really, enjoyed it. I also realized that many of the things they were doing, I already was successfully using as well. People really liked being treated good. They liked the lack of pressure. They liked the random but thoughtful gifts. Honestly, I have never even ordered from them and my wife has only used them a couple of times. But the fact is we really like them and if they had the products we needed we would buy from them.
Sat in on a webinar a week or so ago. The title of it intrigued me since I could not figure out why it was setting such a low expectation for a certain metric. Then I gave them an hour of my life and they basically explained why.
Some people don’t think big enough
Kind of reinforced me to not pay much attention to consultants who are paid for time not necessarily results. Anyhow, Lots of goofy ideas where talked about but two stood out;
- The times you should be cross selling a current customer/client
Dear Big National Insurance company who I want to bring more business to;
We have had a nice relationship so far and I think we both like each other. I’m confused though, some days it seems like you just don’t want my business. Now I understand you won’t want everyone but I am still left disappointed. See we know each other pretty well, I have a nice understanding of who you want insured but somewhere in there somethings not working.
It’s not you, it’s me?
So most of us have friends. They come in all shapes and sizes. You are closer with some more than others. Some you hang out with more often. Some are “on-line” friends or “work” friends but they all get the label friends. They all on some level have a place in your world.
At the same turn, each of them needs or wants something from you. Some need/want more than others. At various times one or more of them may need a lot from you. Over time some friends sort of increase in value(feelings) while others get less. But they are all still your friends.
So an industry has about 6100 companies. What if that was reduced by half or even two thirds?
Lets imagine it goes to 2000. Still seems like a ton of companies in one industry. So lets say it was done in a wonderfully strategic fahion.
- savings can come from the fact that duplication of households needing to be serviced will shrink
- savings will come because large national carriers will not need to redevelop smaller profitable companies. Instead they can take advantage of the time savings and provide a cost savings these smaller companies will never experience
***Working thought, from an idea via a longtime friend***
So the scenario is quite common, friend calls and says they want to have some tree work done on their property. Pretty common. You can also insert, new roof, new furnace, upgrade to electric panel, drainage dug, fire alarm installed, etc. Think of it as any proactive, likely preventive measure that can reduce the likelihood and at worse the severity of a claim.
“Bill, is there an extra discount for cutting down the trees? Will they(the insurance company) pay for it? ” No and No.
I hope this finds you doing well. It’s been a bit and I know things can be tough for some of us. Safe to say it could be more challenging now than when you started in the business. Honestly, if there was an insurance police this would be something they would want to know about, but since there is not I’ll just write this note to you.
When a system fails, consumers and the people they need to run them, we all lose.