Seasoned Pro's.....Please read!

[TonyC]

This question is directed at those who have been in the business for a length of time.

From all indications...the economy is headed for a slowdown...

How is the "life insurance, property Causuality or health insurance business" affected by an overall economic slowdown?

Thank you for your constructive input...

 

[STIBROKER]

it's not...

 

[MIBizInsurance]

Well I will address the the commercial P&C side from a sales person point-

No matter the economy a biz will always need WC, Liability, Property...etc.

What I have found on the commercial side is that many companies that have not taken a bid are now doing so.

Now this is in MI.
I market towards industrial companies so as you can inmagine they are and have been going through tuff times for a while.

Recently spoke to an owner who stated he has not taken a bid in over 10 years. Why now? He is trying to save on any thing and every thing. Sharpen his pencils so to say.

Good- getting many more bids. Chances to cross-sell

Bad- companies are buying more and more on price alone and not on coverage. No loyalty.

Ton more I could add but running out of time.

In the end the folks who can prospect and build relationships will continue to do well.

Quick side note- Life coverage will take the biggest hit in full blown recession. If you HAVE to choose to pay car insurance or life policy what would you choose?

 

[TonyC]

Thanks Sti...can't follow your logic (not that you said much).

Can you explain why "people having LESS MONEY" not affect this business?

it's not...

 

[TonyC]

Thanks MI...that's what i thought.

BTW....are you in the MI (mortgage insurance) biz?

Well I will address the the commercial P&C side from a sales person point-

No matter the economy a biz will always need WC, Liability, Property...etc.

What I have found on the commercial side is that many companies that have not taken a bid are now doing so.

 

[MIBizInsurance]

Thanks MI...that's what i thought.

BTW....are you in the MI (mortgage insurance) biz?

No, Commercial insurance. Workers Comp. Property and all that fun stuff.

Also 401k plans and group products however not main focus.

 

[STIBROKER]

because it is one of the things you need to have....if your client believes in the products....its like saying I don't make enough money to eat.....

Thanks Sti...can't follow your logic (not that you said much).

Can you explain why "people having LESS MONEY" not affect this business?

 

[taterpeeler]

durring a big downturn in the economy i think here is what to expect, at leat in my 16 years this is what i had happen and it was so true after 9-11.... new sales to people without health insurance will tend to dry up, new bills are not something that group can withstand.... selling to people with health insurance is generaly an even swap... so i dont see those sales falling much.... however, i do recall new clients that have existing insurance requesting lower cost, and will give up some of the premo benefits to lower cost. i think the job is to protect that block of business u have on the books...

 

[taterpeeler]

however, one thing that i saw happen at 9-11 was the insurance companies hammered the prices ... all together, it was strange... they all hit the rates at about the same time.... that made it harder to get new sales...

 

[djs]

Actually, if your referring to the current downturn, I'm seeing a strange thing....

Mortgage brokers who made a mint over the last few years are now turning to the steady recurring revenue of P&C insurance. As such, there are few realtors / mortgage brokers, and more insurance agents around. Not a lot, but it does dilute the pool a bit.

I don't do enough health to be knowledgable on how an economy change will really impact that market. On the P&C side, I'm having people drop some coverages to keep the bill a bit more affordable, upping deductibles, etc. Nothing major.

People who suddenly find themselves unemployed tend to take a bit more time to shop, and shop more price than coverage. It can be a bit tougher to compete for new business, but overall, it's a minor change in the overall market.

Core insurance (health, auto, home) is pretty recession proof. It is not depression proof. Fortunately, we don't seem to be heading that way.

Dan