So it is apparent to most everyone that Mergers and Acquisitions are on the rise in the insurance world. Soon enough they will have a MASSIVE impact on my piece of it; the independent broker channel. I’m sure in some pockets it has already started. Fact is the industry and the American public will be better off with less independent agencies. Many existing brokers have not ” kept up with the times..” so to speak which reduces the overall customer experience, gives the insurance companies to much power(which most are not using wisely) , reduces the ease to entry into the business and creates where we are today; Non insurance people entering to take over.
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.
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 to be insured but somewhere in there, something is 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.