Eough of the one sided white paper

So here is the bigger thought, also known as the cure to the industry that is directly “under your nose” ;  Before doing another white paper or survey or some other silly thing to get press, STOP AND THINK. Ok, now that you have done that go get your auto and home insurance plans.  ****This is geared towards the middle portion of America, the basic “vanilla” risk.  What is that?  You are a simple, easy to classify risk.  Meaning you own 1-3 cars and have one residence.  Simple, straightforward; no rentals, no crazy collections, no motorcylce, atv, etc.
Now, do a review of your plans so you have a baseline.  Now go to TheZebra, Coverhound, Compare.com, etc and see what their baseline is.  Do the same with a couple of directs; State Farm, Liberty Mutual, Esurance.  Do you see it now?  Should be right there, pretty simple.  Paradox of choice at its finest.  Now, you can take this a step further and actually call 2-5 human beings.  KEEP THE FOCUS on the coverage.  Watch what happens.  Now do you see?

Time for your bank to wake up and smell the insurance

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.

What if they made a baby

So I was in a moment of frustration and tweeted this out;

if & should produce an offspring So I can have company of my dreams

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.

Industry Shifts

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

The future of Insurance brought to you by Virgin?

So  I had recentlly  read Losing My Virginity by Richard Branson and a smart friend, Chris Brogan, suggested Business Stripped Bare.  So glad I followed two “rules” of mine;

  1. Read about smart people
  2. Read books that smart people recommend to you

Big company fails

**Heavy on industry thoughts

1. I think they can do so much of a better job driving business.  Yup, driving business to them.  Depending on where you look, several hundred million dollars are sent simply to get attention.  That’s really all it is.  Attention.  Because once they get there, where is the follow through?

Google can be awesome for Insurance

So I stumbled onto this article with the headline “Google’s entry into insurance should frighten agents”  I am not sure that one statement could be further from the truth.

Disclaimer; I was not in the room when these comments were made.  Like most articles there is limited space available and the reporter must choose what to write.

FACT: The insurance industry is old and not nearly as technically advanced as most of the places you spend money. Think of Amazon and Zappos

FACT: Google has a lot of money and a lot of smart people.

Want more revenue? More market share? Shrink the available pie

First draft, part 1 of about 12

**Written for my counterparts who consider themselves Independent Agents and Insurance Brokers***

So I regularly read a publication called Rough Notes.  Kind of interesting, some value each month.  They do a pretty neat thing each month, they publish a brief article from a much older issue.  The one that caught my attention was titled “Producing New Business to Balance Cancellations” It’s a topic that I have been working on for over three years.  Fascinating one to me and actually I have my own soluton.  More on that later.

But what if we are measuring the wrong things

**GEARED towards brokers/agents,   feel free to read on regardless of who we are**

1. So if you have a customer and the service/product you are providing has not improved but you are now charging more for it, is this right?

2. So last year you had 100 customers to start and ended the year with say 120.  BUT 30 of those are completely new because you lost 10 of those you started with.  Is this good?  Why did you lose them?  Was this avoidable?

Tipping point on home insurance?

It has been routine for several years to review home insurance and there has been a huge discrepency from the market value to the insurance value to whatever the replacement cost may be.  Who’s right, who’s wrong, I have no idea.  My default guestimate keeps me in the realm of $150 to $200 per finished square foot.  But routinely this figure, combined with the figures set forth by the insurance companies are way off.  Here is one that through me off; 106 Cedar Ave Poughkeepsie New York 12603.

About a year ago this was a vacant lot listed for about $70,000.  Now it is this;