Commoditization of insurance is a good thing if;

As an agent you: 1. Have a lean business with good profitability.  This puts you in a better position to handle market or government based price changes. 2. Understand customers pay you not companies.  Your customers write the check then the company writes a check to you.  Without their money the companies do not get money and you do not get money.  Who is the most important in this equation? 3.  Have a strong “win win” relationship with your customers.  This will give you the benefit of the doubt in certain situations and will create a longer relationship.  Longer relationship will typically be more profitable.  If your customer is loyal and believes they are more of a partner in your business who cares if it is a commodity you aren’t!

As a company you: 1. Have a consistent underwriting philosophy and do not try and play a hot piece of the market for a few years just to grow.  Get good at what you know and make each dollar as profitable as possible.  2. Value your customers.  If you have whatever you consider a good risk KEEP IT do not let it go make an effort to make them feel appreciated.  3. Created Loyalty.  Give them a reason to trust/love/pay you don’t just say they do.  Give unexpectedly, don’t squander unitended loyalty of a long term good paying claims free customer.

As a purchaser you: 1. Make an effort to review your insurance every 12-18 months.  Give your agent first try and if not happy find someone else there are plenty of us.  2. Don’t listen to your neighbor/friend/family member about what they heard ask a professional. 3. It is not necessarily a good thing to save $500 on your insurance.  $200 is a market swing, no big deal.  $500 with no dramatic changes(tickets/accidents falling off, removing coverages, taking a driving course) is not a great thing.  Enjoy the money but hope for the next year or twenty that the rate stays the same or goes down slightly.

My opinion of course…