Tag Archives: thoughts

02.14.19
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On Insurance Rates

what now

After seeing an insured go to the national carrier they are with and lower themselves from our minimum to the state minimum. 


Completely understand this younger person who needs to drive to work, pay other bills, etc.  On the other hand, 8 of our 10 options would not offer a rate so he is left with 2 of our choices and maybe 2-5 others elsewhere.  Now, we have a woefully underinsured driver on the road because this is what he can afford. So, his carrier is doing what they can to take on some of the riskier populations.  But riskier is relative to the criteria they are basing rates on.  Charging for driving infractions versus for paid claims.  But, those other 8 companies of ours, not to mention a few dozen more will then shoulder the cost of the property damage from any claims he is involved in, not to mention the potential for large medical bills.  As I learned this fall, it is very likely, in the event of a claim that exceeds the property damage, the carrier that pays it can then sue, garnish wages, etc.  None of these are positive.  None of these are healthy for the finances of the overall population.  None of these are good activities for expense ratios. But, if a contract is not enforced, if consequences for bad choices are ignored, where are we left?
We’re left where we are now.  With companies who may or may not know who they want to insure.  Then, they apply data to that uncertainty and it seems to be when in doubt, apply a higher rate.  But it gets better, see when they cannot afford that higher rate and then cancel that policy, the new company can choose to negatively impact the rate for this person. This now locks them into a typically higher rate for another six or so months, maybe longer.  Not good for anyone.
Now, in theory, they could have provided him with coverage and collected premium, maybe secured with a telematics device?  What if we took a longer play and said, you know, this person fits all our criteria and seems to have had a rough stretch 2 years ago.  But, no claims were paid out and there were no accidents reported.  Looks like he/she is in college and engaged now(we know because we are using data confidently and to the benefit of the customer, not the carrier) maybe this is a person we should work with?  

No solutions, just concepts that can be used better.

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?

12.07.13
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“He knows everybody” and more useless wrong uses of phrases

I get it I know they are expressions but please use some caution.  How about ” he/she knows a lot of people”?  Makes more sense than saying everybody from a grammatical standpoint it is also more more logical.

How about the word “know”  do you really know someone?  My guess is you maybe getting to know someone or have a good sense of who the person is.  When you know someone my guess is you need to think to yourself; Do I know them to the point that I will point my name next to theirs and refer them?  Not that you need to stand by their work, things happen.  But what I mean is if you really “know” someone you should be willing to share them with others and be willing to risk a piece of your reputation when referring them.

“But I heard from someone…”  Really, who?  Who is this somebody that you are not willing to share the name of?

Love– seriously, I appreciate you wanting to step up from like but only use this if you mean it.  Maybe there are different levels of love?  Maybe we should reserve love for things that are alive, specifically humans and pets?

CAN’T is worse than F$&* or S*$# or any other curse word you can think of.  How about how we use it so often.  So can it really not happen or do you just not know how to make it happen.  Can it really not happen or are you just unwilling to do what it takes to make it happen.  Things usually can’t happen right up until one person ignores everyone and does it.

“I’ve got a great idea…”   Great there are books full of them how about you make something happen instead.

Just some thoughts.

 

 

 

12.16.12
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Lessons in business brought to you by death

**Going off topic, will be going a bit personal and not talking much insurance**

So it has been the worst four week stretch in my life.  Started with the sudden death of my older brother followed by four weeks of floundering about.   I am finding that the floundering about, trying to get back to full speed part to be especially annoying and difficult.   Normally there is an article, book or mindset I can apply but none of what I know seems to be working.  Either way, you must keep moving forward.

Since I would prefer you never have to learn or have the experiences that death created for me let me share some with you.

1. Totally think that when at a wake some solid eye contact and a hug/handshake/pat on the shoulder is way better than saying “So sorry…” or “How are you..”  Just like when doing business or closing a sale sometimes saying nothing is best.

2. Despite how many people contact you, write about you, show up to pay their respects, etc there are always more people out there that have no idea who you are.    This is a big world, it is great when the world shrinks for a moment but remember it is a big world, make the most of your little piece of it.

3. It is absolutely true that in times of adversity you will see true character emerge.  Scary to think how many people just float about life completely self absorbed.  Never forget that more times than not you have no idea what is going on in another persons life.  Sometimes by design sometimes because there is no reason to know but that does not excuse you from acting like a decent human being.  ** Thinking of Adam Sandler and Steve Buscemi’s conversation in Billy Madison**

4. Why wait till tomorrow? I have no idea.  There have been some very deep things written towards me and I have also been involved in some very personal conversations.  Despite how positive the messages are they all hurt.  The ones that hurt especially bad are the ones filled with regret of not saying something or meeting him or clearing up some bad feelings.  That sticks with you.  Stop waiting.

5. Having a to do list, goals, a written plan, etc.  was about the only thing that kept working.  When your brain is working or when it is mush a written plan is a huge help.

6. As amazing as it is to see a network/tribe/group of people pay homage to one of their own post-mortem it presents a new challenge.  How can you maximize your network when death or sickness is not involved?  Not sure but I will actively be trying to figure this out.  In the meantime, it means a lot to have good wishes, e-mails, contributions to a memorial, flowers, etc. sent to a family. Actually beyond words at this point BUT I cannot help but wonder how many people said these things to him before he died.  I suppose the other challenge is really appreciating everything while you have it.

7. Yet to find anyone that talked about all my brother owned instead everything is about what he did.  Quite honestly it isn’t much but boy did he have a ton of experiences.  Best I can tell is he plowed whatever he had into living life.  Memories are the best souvenirs.

8. Do whatever you can to fill your “good will” account as much as your bank account.  You have no idea how helpful it has been to have built up  my personal good will account.  I did not do it to be repaid but since I have made many withdrawals in the last month I gotta tell you how glad I am to have a pretty hefty balance available.

Well I suppose I can keep writing but this will do for now.  I would expect to get back to talking insurance soon.  I suppose tip nine is;

A good brain dump feels good.