Reality is this; insurance companies are run by other members of our human species. They are also influenced by their surroundings both human and inanimate. They are influenced by many of the same ideals, both positive and negative as the rest of us. There is a lot of talk about “disruption,” #insurtech, #fintech, and #bigdata. The industry is “ripe” for change, blah, blah, blah.
Yes I have many of my own thoughts, heck it’s my blog so of course they are my thoughts. This dawned on me the other day;
Maybe the insurance industry is just a reflection of society. But how? In what way(s)?
Let’s say it costs less than $20 to acquire a customer(it should) and most times can just be measured as a fraction of fixed operating costs since there is no official advertising expense? Is this really possible? Yes,yes and yes!!!
Even if we broke down all your fixed costs, which are hopefully almost ” to the bone” and put some slight variables in you are hopefully at a very, very manageable daily cost.
Is being hired by one new household per day unreasonable? NO NO NO. If it is, time to change business.
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.