Rate increases; the most debilitating piece of the personal insurance puzzle

Incomplete draft from March 15, 2015.  I could write this post, with very little variation, this week as well. That is a massive failure.  Adding any more to it would be a waste of time.

 

The setting; a longtime customer is hit with double-digit rate increases two years in a row.  First year can be absorbed but by the second they have had enough.  The end result; YOU keep the customer.  That is the goal right?  Find a group of people who trust you and keep their business with you as long as possible.  What happens?  His $5500 premium drops to $4200.  Yes, scary.  In that he decides to save some money and drops an umbrella.  We also move a child onto their own.  So where is the fail?

Time for an annual review

Cleaning out some drafts I apparently never published, the paragraphs below(italics) were from February 2015.  Updates and comments in regular type.

Reviewing your insurance could be the most critical piece of personal finance.  Until the process can be automated it is on you and me to do it.  In this case, since it is just my insurance it is all on me.  I first wrote about this over five years ago.  If you searched the word “review”‘ on this site you would get several different takes.  Mostly coming from a variety of things that happened.  Here is a fresher look since my policies just renewed.  Yes, it actually happened just shy of three weeks ago and yes the paperwork has been on my desk since late December.

Just keep in touch

In the last week, a customer left, no news there, but I have donated to a fundraiser they did and do sort of know them. Yesterday, another customer came in with a gift for me and one of our team.  Actually very tasty olive oil.  The first one checks more “boxes” that most companies look for and spent at least twice as much with us.  The second spends half the amount of money and doesn’t “fit” common profiles of what a company wants.  Below was written May 2014 and has only been updated thanks to Grammarly.

What Else?

One of my favorite questions for sure.  I’m continually stuck on the notion that you/we should strive to be worth sharing.  If you are good enough.  If the mission is strong enough.  If the offering is good enough, it will be shared. Period.

Advertising itself has been ruined by advertisers.  It’s diluted down to a nuisance, an annoyance, worth ignoring than paying attention to, valueless, etc.  Had some time on Saturday, more accurately, kids were out being kids and the project I am working on needed more time and not that much thought so it was movies in the background as well as a college football game.

Anonymous and the Call Center

Really liked updating this post from October 2013, still is 100% accurate even if I could change a few things, I didn’t.  Being a resource can be interpreted a few ways; you are actually the resource, the one getting things done.  Or, you are the resource because you shared one.  So some moments from the week;

Opening > Closing ?

One of the better things about working with “newer” people is you get to rethink both positive and negative moments.  Analyzing a situation and the steps create a refresher course for me and have even helped open my eyes to missed, unnecessary and better steps that can benefit all of us;

This post on closing vs. opening has continued to come up.  Sometimes it comes out as ” Just go make some new friends and see what happens…”  other times as ” Just see how you can help them..”  or “See if he/she is going to that event and if not invite them”

Dynamic underwriting exists…and somehow it is bad for customers

I’ve had my own run of claims as well as some others going on lately.  Fortunately, an occurrence that could have been claimed, sort of,  and a basic “How to handle a claim post”

Both are still accurate and both are somewhere between far from the truth and not enough.  I’ve long thought insurance functions as much like a credit card or bank loan than what people expect from insurance.  But, maybe I’m also abusing or misusing the word dynamic a bit.

Sales lines and ideas

Saw something yesterday and then read this and need to empty the brain.

  • I’m almost entirely certain that a membership fee of sorts is possible and likely for brokerages of the future
  • It does seem silly that Companies pay a commission for sales but a licensed professional essentially works for free
  • If it follows the rules of a commodity, it is.  Sure, the companies can separate from  each other based on behavior but THEY DON’T
  • With the rise and likely sustainability of influencer marketing, it is crazy to think of the loyalty that is available and wasted by insurance companies

Situational reading

I wrote, “Want to improve your world, start with reading this..” and I suppose I meant it in October 2012.  But, since then I’ve changed quite a bit and so has the world.

Coincidentally, I am in a bit of a reading lull.  My morning reading time is absorbed by writing and a larger project that needs to get done.  I also have several books and magazines backed up.  Fortunately, there is Audible and still a fair amount of driving happening so I am not completely without.

Please forget about me

Apparently, I was annoyed by the debates back in 2012, don’t worry, it is a brief post.

But, this line is worth building on

“Because they are afraid that they do not do enough good so if they stopped advertising you would forget them.”

On one hand, maybe you are right.  On the other, is this a bad thing?  So there are actual companies that will review your credit cards to see what, if any, auto payments you still have going that you may have forgotten.  Essentially, ” set it and forget it.”