AKA My and the Insurance/Banking industry’s simultaneous biggest problem and opportunity
AKA What #insurtech should be trying to solve but outside of me and maybe some people I have not found yet, is not.
Really it is two paragraphs. One that comes from a standard document that you’ll find in your policy forms. Yes, I know you likely do not read them. Also, the version in your state may be different. The other is a direct quote via an email. I see or hear variations of the second one every week. So here goes;
Just read this by Seth Godin; The Perfect Crime a very similar thing actually occurs in Insurance. Thanks for the idea Seth.
I cannot factually speak on any of the lobbying or NAACP points. Instead here is what I do know.
None of the insurance advertising you see actually shows you how to be a better consumer in the long term. The companies only concern is on switching your insurance this year which, since the cost to acquire customers is high, is pretty stupid. It takes several years to turn a profit on any individual, why would you only advertise for this year? Because you are conditioning the masses.
is not really what it seems when it comes to insurance. Reality is they are a seemingly wonderful tool used to advertise to the masses of people that are required to have insurance. Do they create a savings, yes they absolutely do. Are they worth paying attention to? Yes, if you are entitled you should be asking about them and receiving the credit.
Like most garbage there is a “catchy” headline and zero to no substance behind it. This article tries to study insurance rates and say that “rich” people get better rates. Now although I am not a scientist I know that when running an experiment you must keep as many factors equal as possible. This “experiment” did not. The facts;
Using two hypothetical characters the group compared premiums offered to two 30-year-old women. Both had driven for 10 years, lived on the same street in a middle-income Zip code and both wanted the minimum insurance required by whichever state the group was researching.****Using the minimum insurance required already screws up this experiment. Having the lowest coverage required makes you look irresponsible*****