I Cant Win! Why Are Consumers So Price Oriented?

[Milkman1265]

Just had a rough 2 weeks, a competitor broker keeps winning accounts, by lowering dwelling coverage and raising deductible.

I get notice from carrier/insured and i ask why and what coverage. They all tell me the same story, its the same coverage but cheaper so i went with them no hard feelings. I asked to see the quote, and explain that their deductible was raised and their dwelling was lowered to get this price.

They said they didnt know he raised the deductible, but then justifies it by saying they save a couple hundred dollars.

This one new broker keeps doing this to my clients/new prospect... very frustrating when you try to explain the difference in coinsurance penalty and deductible. The insured is clueless and keep justifying it by saying its so much cheaper.

how can we take back accounts with coverage and no price?

 

[CaptiveGuy]

You can't fault your competitor for the higher deductible, only the coverage possibly. Every company uses a different replacement cost evaluator so if his dwelling coverage is within $20k or so of yours it may be as simple as not getting the exact finishings etc. into the evaluator.

I would always sell as high as a home deductible as high as possible but my default is $1000. If I can show savings at $1500 or $2500 maybe even $5000 for larger homes why not? People need to stop filing claims for smaller claims anyways.

Find out what carrier he is beating you with and try to find holes in their coverage.

 

[Justin Bilyj]

I hate to say this but the auto insurers did it to themselves, they have trained the populace into horrible consumers, where sacrificing quality and getting the lowest price is key.

 

[Milkman1265]

Funny thing is, we are using the same carrier! i keep getting BOR courtesy notice to try and get the client back. (so market block is useless)

the deductible i use is standard 500 or 1000, he is using 2500, 5000 without telling the client. That is whats bugging me.

Same company, different coverage and the client is believing he/she is getting the same coverage i'm offering at a cheaper price. 9/10 customer i ask what they think the deductible is, they tell me they dont know or the same as mine.

when i explain the deductible and how i am using the SAME company, they can come back to me, most of them say no because 1. they paid a "broker service fee" 2. they already paid them and dont want to go through the hassle.

 

[Schwetty]

it's tough to take price off the table in this economy for most people and I feel your pain having lost so many accounts over price in the past.


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is there some loophole in the carriers system that is allowing him to find so many of your clients?

 

[Milkman1265]

That's also something i am suspicious of, i dont know how he is targeting my clients. It seems like he got a list of some sort.

 

[Schwetty]

That's also something i am suspicious of, i dont know how he is targeting my clients. It seems like he got a list of some sort.

what company are we talking about? If you can share it

 

[nyc2phi]

If it is the same carrier how are you getting different replacement costs ? If you have control of the accounts, when you get the BOR, just call the client and offer what the other broker offered unless it really is not in the best interest for the client or you. Have them sign off on additional documents stating that they are requesting to have this high of a deductible or low dwelling coverage.

 

[Milkman1265]

I am calling them back and explaining the coverage difference and deductible ranges. But it's always too late when they paid the new broker.

They never want to go through the hassle of switching back.

The replacement cost estimator is weird, because it allows you to go below the 80% replacement cost. and you can play around with the 80% - 100% coinsurance.

 

[STIBROKER]

I am calling them back and explaining the coverage difference and deductible ranges. But it's always too late when they paid the new broker.

your loss ....live and learn.......next time give them 5 scenarios ...lowest to highest and go from there....