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If you know and Insurance Agent, Give them a hug today. They need a hug. (Part III)
Most insurance companies returned bad Q2 results furthering their unease for the Personal lines part of the Insurance industry. This was after returning their worst Q1 results in history.
Todays Headline reads: Auto Claims Inflation Speeds Ahead of Premium Increases
(In short, that means despite all the rate increases, Insurance Companies are not comfortable with writing another new customer until they get an understanding and control of INFLATION.)
So, if you are an insurance company losing money quickly, the idea is to lose as little of it as possible. (So they Raise rates, nonrenew policies, lower commissions, Turn off the sales force in very creative ways, etc.)
Simply put, the Tactics used to halt New business makes “Insurance Agent” life hard.
Let me give you an example. Cause this just happened to an Insurance Agent:
Client: ”Hi agent I have been insured with you for 10 years, However I am moving my Home to another agent. I’ll leave the cars with you but he is saving me $60 a year by putting my home with ____”
Agent: “OK, I can do that but you will lose your multi policy discount and it looks like the agent wrote it all wrong, I can see the quote. Your house will have an inspection on it and that probably won't go well as carriers are getting more and more strict on…..The coverages are not the same and…….”
Client: “I don’t care. Cancel it. $60 is $60!”
Agent: “OK.”
One month later Customer calls Agent.
Customer: “Can you put my home back where it was? The agent that “saved me $60”, has me in a predicament. The Inspection did not go through and the policy is canceling tomorrow.”
Agen: “Uh, I can try later today, but it will take me significant time and I don’t think I’ll be able to get the policy back to its original level of Bodaciousness. Before you had a $1,000 deductible on your home. Now the carriers lowest deductible is $2,500 and there is a sperate deductible for Wind and Hail damage of 2% of your homes value. Your home is worth 700k and so that’s a $14,000 deductible tied to wind and hail events. If I can bring you back, you will have a new policy and the coverages will be different, (Because what the company now offers is different as they tighten up in this hard market.) Trying to save that $60 might have really set you back quite a bit.”
Customer: “Insurance is such a scam”
Please if you know an Insurance Agent; Please, please give them a hug today!
Most insurance companies returned bad Q2 results furthering their unease for the Personal lines part of the Insurance industry. This was after returning their worst Q1 results in history.
Todays Headline reads: Auto Claims Inflation Speeds Ahead of Premium Increases
(In short, that means despite all the rate increases, Insurance Companies are not comfortable with writing another new customer until they get an understanding and control of INFLATION.)
So, if you are an insurance company losing money quickly, the idea is to lose as little of it as possible. (So they Raise rates, nonrenew policies, lower commissions, Turn off the sales force in very creative ways, etc.)
Simply put, the Tactics used to halt New business makes “Insurance Agent” life hard.
Let me give you an example. Cause this just happened to an Insurance Agent:
Client: ”Hi agent I have been insured with you for 10 years, However I am moving my Home to another agent. I’ll leave the cars with you but he is saving me $60 a year by putting my home with ____”
Agent: “OK, I can do that but you will lose your multi policy discount and it looks like the agent wrote it all wrong, I can see the quote. Your house will have an inspection on it and that probably won't go well as carriers are getting more and more strict on…..The coverages are not the same and…….”
Client: “I don’t care. Cancel it. $60 is $60!”
Agent: “OK.”
One month later Customer calls Agent.
Customer: “Can you put my home back where it was? The agent that “saved me $60”, has me in a predicament. The Inspection did not go through and the policy is canceling tomorrow.”
Agen: “Uh, I can try later today, but it will take me significant time and I don’t think I’ll be able to get the policy back to its original level of Bodaciousness. Before you had a $1,000 deductible on your home. Now the carriers lowest deductible is $2,500 and there is a sperate deductible for Wind and Hail damage of 2% of your homes value. Your home is worth 700k and so that’s a $14,000 deductible tied to wind and hail events. If I can bring you back, you will have a new policy and the coverages will be different, (Because what the company now offers is different as they tighten up in this hard market.) Trying to save that $60 might have really set you back quite a bit.”
Customer: “Insurance is such a scam”
Please if you know an Insurance Agent; Please, please give them a hug today!
