Tag Archives: insurtech

10.26.18
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I think my dog appreciates me

She does. She can’t say it but she shows it, at least I think she does.  Maybe the world needs a better guide to “working with an insurance agent.”  Here are a few bullet points from 2010.

This is closer to the truth than what I say to myself every day; which is that our customers appreciate us.

Comes on the heels of a bit of a rant between myself and one of our team, in front of a newer member of the team.  In the same stretch where a few customers have left that has been a bit tough to comprehend.  Sure, people leave, it is part of the business.  Even if the 25% rate increase is the cause it is always your fault.  Even with a backlog several weeks long and the ability to be overwhelmed with new people, losses sting.  But, we keep going forward.

The problem with reading a lot and the “current content, content, content,”  and ” please don’t forget me even if I am not worth remembering”the world is sometimes ignorance seeps through and people are writing to be seen not to convey information.  This is somewhere in the middle.

Most people have no clue or interest just how murky it is behind the scenes of auto and home insurance.  I read about a merger last night and my very first thought of the 9 billion dollar merger was “I hope that company can now figure out how to stop mailing EVERY document to us.”   But, as usual, the direction is forward.

The article of the week was two silly insurance companies, one old and one new, spending money on advertising instead of on their customers.  With the old one also using a B-List celebrity and a couple of NBA players to make their “point.”  In quotes because there really wasn’t one of any value.  Just another example of insurance dollars being spent frivolously.  Oh, and there is actually no way an agent, whose primary compensation is commission based, can spend that much time on claims.  Especially if working for a captive carrier.

And, appreciation is not the point.  Built into our system are several procedures to eliminate things.  Namely, even though the losses sting, our flow of new business far exceeds the people leaving.  And, even having this, we have other procedures in place to reduce the lost customers.  Both of these and their sub-elements work and work well.  And, as I said and will continue to say, we need to have enough pride that it stings, momentarily, and then shrug our shoulders and keep going.

 

09.15.18
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Buying should be easy

Period. Full Stop.  “buying is the new black” or whatever clever line you can insert.  The original post is here  https://theinsurancebill.com/?p=197

You can insert your own example of my microwave/hood combo.  This week it was a charitable thing that has yet to put an easy PayPal link on their website.  I’m not against paying you, but I need a way to do it and YOU NEED TO ASK.

It has been six years and I have yet to hear anyone say ” Please sell me insurance…” yet unfortunately many are still trying to do it, still.  Sad, but on the other hand, those of us that are helping people buy are likely as busy as us.

Here’s the thing, the world and most lives are busy. “Easy” is able to be bought “hard” needs to be sold.  I’ll take easy.  Yes, I know we and others can certainly be better.  But, regardless of what we come up with someone still needs to ask for the money and taking it needs to be easy.  Some things that maybe you can help with;

  • We have very few companies that will take ALL brands of credit cards
  • When margins are tight and shrinking, who should absorb the fee
  • PayPal is making HUGE strides, but I am not quite connecting the dots yet.  Has anyone in insurance?

 

03.09.16
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The most powerful paragraph in insurance

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;

In connection with this insurance, we previously used a credit report or obtained or used a credit based insurance score based on information contained in that report.  We may obtain or use credit information again provided, however, that upon renewal such information may only be used to reduce premiums.  An insurance score uses information from your credit report to help predict how often you are likely to file claims and how expensive those claims will be.  Typical items from a credit report that could affect a score include, but are not limited to, the following; payment history, number of revolving accounts number of new accounts, the presence of collection accounts,bankruptcies, and foreclosures.  The information used ot develop the insurance sore comes from Transunion.  If you have any questions about the use of credit information in insurance underwriting, you can contact us at 1-800-***-**** or write us at p.o. box______________ or via fax at 877-***-****,  When you write us, please include your name and policy number.

Here are a series of questions I am pondering;

So when negotiating for this right, did companies really just build in a “backdoor” to cover them if it didn’t work?  Think about it; if this was so accurate why do they reserve the right to raise your rates after claims?
Is this really a “customer centric”approach?
Why don’t they actively use this awesome tool to retain you as a customer?
Depending on what blog or newsletters you read, depending on who you follow, depending on who you work with/for you’ll catch almost the  “excuse of the week” when it comes to fixing the personal insurance marketplace.  The saturation point of unexecuted thoughts and ideas has been reached a long time ago.  I prefer things much simpler; acquire customers, take care of them, keep them.  By keep them I mean BY ALMOST ANY MEANS NECESSARY.  I like to think I follow a good cross section of people/companies.  Yet they all see to alternate what the excuse is for not being able to help the customer.  So many are focused on new business and will spend whatever time and money necessary to get it but most overlook what they have already.  Silly and sad…..but creates an awesome opportunity.
2.  “Billy,
Why would the rate go up 50$ shouldn’t it decrease over time? No tickets, no accidents… Is there anyway to lower the rate? It just doesn’t sound kosher that the rate they want now would be more then the initial payment with XYZ, then the second payment decreased to around 680$ which I’m fine with… “
Quick Back story for you insurance people; came to me as uninsured, single, male.  I was thrilled with the rate he obtained. Then, for the next six months his rate went down, then after that period his rate went up.  In the meantime, as I do, I checked my markets to see if anything better was available.  His rate, although inexplicable raised, was still the best I could offer.  
 
His logic is completely sound.  This is, sadly, the once accepted but should no longer be acceptable, norm.  This method of doing business is exactly what is allowing newer companies to come in and try and “disrupt” and old system.  Crap like this is why your agent might be pounding you with a useless newsletter or article.  This kind of behavior is not considered acceptable in any of your other buying experiences, why do we as a society allow it to continue?  
 
The short answer is I don’t…but more often than not am outnumbered.  The odds are long, but the payoff is massive.  Based on my(my company’s) growth rate, people like the way I do business.  But currently we come up short with technology and people power and to not bore you with analogies, it’s just tough.
 
Take from this what you want.  I gain more answers and fine tune things almost daily.  Almost daily I am also inundated with silly reports and nonsense being pushed by marketers and companies onto my fellow agents.  Such is life…currently.  I/We keep moving forward.  Actually close to a pretty massive move/shift that will greatly accelerate things.
 

An aside that is sort of related; A long ways back it was a Monday afternoon and a coach was giving us JV’ers a pep talk.  During this we watched the other team line up and he pointed out a couple of very large people.  He was very quick to point out, if they are so big and bad why are they playing on JV?  Yup, simple, profound and very logical.

I think  of this after just about every article, white paper or study I read.  If the people writing or being quoted know so much about how insurance is bought and sold, maybe they should start their own insurance brokerage or go to work for a broker or company?  The reality is things might accelerate if they did.

ONE HUNDRED MILLION or more people will benefit from these changes, would you like to help me?