Is Personal P&C Insurance Dead?

[agentofintegrity]

Personal lines P&C is not dead! If you sell on price they will leave you on price. You have to sell the value of the agency system... Local business, dedicated service and trusted advice... Differentiate yourself from what everyone else is doing, and go after prospects who have something to lose.

 

[Arnage150]

I asked that question to the CEO of a billion dollar insurance company last year and his reply went something like this.
"No it's not dead. People have been saying that for the last decade and our personal lines written premium continues to grow. The volume writers have their business model and we have ours. They sell minimum limit policies and make their money on volume and investments. We make our money on increased limit policies and intelligent underwriting."

 

[Heather]

I'm going to suggest a "look in the mirror" moment.

You jumped all over somebody today looking for some advice...just seems like you've got some things going on personally that may be contributing to your "lack of fulfillment"

I did not jump all over that girl, I pointed out that its ironic that she buys crap insurance over the phone has no agent, but now has a problem and needs an agents help. I merely suggested that next time she consider spending her money with the local agents.

My customers are mostly poor, I am asking for referrals from them and being referred more poor people. I get referrals from the buy here pay here guys but not the BMW dealers. So I am well aware I am getting exactly what I asked for. I could do less business or more of what I don't want.

 

[nyc2phi]

I asked that question to the CEO of a billion dollar insurance company last year and his reply went something like this. "No it's not dead. People have been saying that for the last decade and our personal lines written premium continues to grow. The volume writers have their business model and we have ours. They sell minimum limit policies and make their money on volume and investments. We make our money on increased limit policies and intelligent underwriting."

Intelligent underwriting meaning agents writing the business and not computers and 1-800 number reps.

This model will never die, where's the incentive for the carrier to let this die? 50% of book profitability is proper rate for the exposure and 50% frontline/re-underwriting. Computers and 1-800 losers can't do this correctly.

Every policy has a cost factors for new and existing business. Whether it be volume marketing or paying an agent commission. If I was a respectable carrier I'd rather pay an agent commission to get the job done right.

 

[insurance1822]

I'm going to suggest a "look in the mirror" moment.

You jumped all over somebody today looking for some advice...just seems like you've got some things going on personally that may be contributing to your "lack of fulfillment"

Shutup Gooner. Who's side are you on here? This isn't psychology forum...it's a P&C Insurance Forum. Freaking Hippy

 

[Gooner]

Shutup Gooner. Who's side are you on here? This isn't psychology forum...it's a P&C Insurance Forum. Freaking Hippy

I'm on the side of people who take responsibility for their actions.

Heather markets to the lowest of the low, then wants to complain about it. She needs a look in the mirror...the only way to change her business model is to change her marketing efforts.

She attacked a poster yesterday because she is bitter and jaded. You don't seem to have that problem...which is a good thing.

Ftr...people who know me would never consider me a hippy...Cgreene would be one of those people.

 

[cgreene]

I did this for many years didn't write business for 45 days. Changed my market and best decision I ever made instead of it being 80 percent of my business its 20 percent. Loss ratio down 30 percent and retention of 20 percent. With being IA have to find the carrier that client fits and keep it away from your preferred carriers. This way book remains profitable.

 

[insurance1822]

^ My primary non standards are GMAC & Progressive and all my bums go there. The loss ratios speak for themselves.

 

[cgreene]

I don't even consider progressive non standard anymore the direction they are moving.

 

[indienoise]

I don't even consider progressive non standard anymore the direction they are moving.

Are they doing well for you? I don't even know what to call them anymore.

They're getting to where more often than not, they only want PIF on nonstandard, a market where people obviously can't pay 6 months in full.

Their midmarket is really hit or miss.

Their "preferred" is anywhere from 25-200% higher than everyone else.

Seems like all I can get them anymore is the stuff that even other non-standard carriers decline.